Almost one third of people intend to invest the money of the II pension pillar that they have thus far collected on their own, either by placing it into an investment account, real estate, or elsewhere, showed Luminor’s Estonian pension survey. Around 40% of people wish to keep and continue growing the money they have thus far collected in the II pension pillar in the future as well.

A substantial number of people investing elsewhere intend to place their already collected money into real estate (13%), and a slightly smaller percentage, 11%, intend to place it in an investment or securities account. Cryptocurrency and shares (7%), as well as contributing into one’s personal company (3%) are also seen as potential investment opportunities.

“You cannot buy real estate for the average amount that has accumulated in the II pension pillar. Certainly, there are people who can buy real estate with their retirement savings, but they are rather a strong exception. Therefore, one should see exactly how much money they have really accumulated when making investment plans, and also talk with experts about which opportunities can be trusted,” said the Head of Luminor’s Baltic Pension Department Rasmus Pikkani.

Survey results showed that there are also people who wish to spend the accumulated pension money: 7% would pay back loans or debts, 4% would spend for personal reasons, and 1% would use the pension money as their own contribution for a loan. 12% would redirect their pension money within the bank: 6% to a fixed-term deposit and 6% to the III pension pillar.
41% of people whose mother tongue is Estonian intend to keep their money in the II pillar, but that is only the case for 30% of people speaking Russian as their mother tongue. 44% of those who believe they will retire, and 28% of those who believe they will not retire plan to keep the money in the II pillar.

Keeping money in the pension fund is also influenced by independent investment experience: the less there is, the greater the likelihood that the person will continue to keep money in the II pillar. 45% of those who have not even considered investing in the past, and 40% of those who have considered investing but have not done it, wish to keep their money in the II pillar fund. Among those who have some experience in investing and those who are investing on a regular basis, a total of 33% and 31%, respectively, plan to keep their money in the II pension pillar.

Pikkani added that even though the survey results show people’s current attitudes and future plans, they cannot be used to make accurate predictions. “The actual percentages of people remaining and leaving, and the consequences of the reform extensively depend on how difficult or simple the whole process will be, and how this topic will be discussed in the public sphere,” said Pikkani.

The survey responses were collected using a quantitative web survey in June and July of this year. The aim was to find out how people regard the Estonian pension system and what they expect from it. A total of 1599 II pension pillar clients of Luminor Pensions Estonia participated in the survey.

For further information please contact: Martin Kõrv