People of the Baltics believe that additional savings for old age should be started immediately after reaching the age of majority
Most people in the Baltic States agree that one should start saving for retirement at a young age – between 18 and 24, according to a survey conducted by Luminor in the Baltic States.* 32% of Latvians, 37% of Lithuanians, and 43% of Estonians agree with this statement.
The results of the survey show that young people aged 18-29 (39%) are the most likely to agree with the opinion that starting to save immediately after reaching the age of majority will allow them to have a financially prosperous old age, while older people aged 60-74 (29%) are the least likely to agree with this. Those over the age of 60 and close to retirement age themselves think that the most appropriate age to start taking care of a financially secure old age is between 25 and 34, with 34% of respondents in this age group saying this. At the same time, 6% of all respondents say that one should not think about additional savings for old age until the age of 55.
“It is important to start saving for old age as early as possible – the earlier you start saving for retirement, the more you will be able to save. If you start saving at least €20-30 of your monthly income at a young age for retirement and increase your regular savings by €5-10 each year, you will significantly improve your financial well-being when you reach retirement age. However, even if there is little time left until retirement age, it is not too late to start saving for retirement, although higher monthly investments are to be expected. We also recommend using a part of additional income for savings, e.g. personal income tax refunded by the state on contributions made to the 3rd pension pillar in Latvia,” says Anželika Dobrovoļska, Head of Luminor Pension Products.
Although women and men share the same views on the most appropriate age to start saving for their retirement, the Luminor survey shows that young women aged 18-29 are the least likely to save in the 3rd pension pillar (6%).
* The survey was conducted in November 2021 in cooperation with the Norstat Latvia research agency, with 1000 respondents aged 18-74 in each of the Baltic States.