Outlook pessimistic on pension system

RIGA - Twenty-six percent of Latvian residents do not trust the pension system, according to a study carried out by SEB Bank and the market, social and media research company TNS, reports Nozare.lv. In Lithuania and Estonia, the figure is at 15 percent.

The welfare minister’s adviser Maija Porsnova believes that the lack of trust in the pension system is connected with such factors as the financial crisis.
More than 50 percent of respondents point out that they have not received sufficient information on pension matters, or solutions. Only 17 percent of the employed in Latvia, 18 percent in Lithuania, and 11 percent in Estonia have inquired about their pension capital and amount.
Ten percent admit that they do not know who manages their pension capital. The situation is similar in Lithuania and Estonia.

Asked about the reasons behind their lack of interest in pension matters, 51 percent of Latvian, and 57 percent of Lithuanian and Estonian residents say that these matters are far off in the future to worry about now.
The study shows that 20 percent of Latvian, 16 percent of Lithuanian and 12 percent of Estonian residents doubt that they will live long enough to receive pensions. Eight percent of Latvian, 11 percent of Estonian and 21 percent of Lithuanian respondents do not rely on pensions due to their insignificant amounts.

The study was carried out in May, interviewing 1,000 people in each country.