Luminor’s survey: people don’t feel they've secured themselves enough for retirement
63 per cent of people find that securing their retirement is very important, but only about a quarter of them feel that they’ve done enough about this, revealed the pension survey of Luminor Estonia.
According to the survey, the importance of securing one’s retirement increases as the person gets older, as expected. The share of respondents to whom this is important is 48 per cent among people aged 17-36, 69 per cent among people aged 37-60 and as much as 86 per cent among people at least 61 years of age.
However, the importance of securing one’s retirement is not reflected in people’s confidence. Only 10 per cent of the respondents feel that they have enough assets and savings to cope in retirement. The percentage of confidence is low in all age groups. The responses also revealed a gender gap – 13 per cent of men find that they have enough assets, but only 8 per cent of women feel the same.
“The results of the survey indicate that although securing their retirement is important to people, they don’t feel confident about their future at all,” said member of the management board of Luminor Pensions Estonia Martin Rajasalu. “Although small savings are the biggest problem, we don’t dedicate enough time to planning our retirement and saving enough money to be able to make out retirement dreams come true.”
However, Rajasalu was happy to note that in comparison with the population survey carried out by Luminor two years ago, the number of people who claim to be thinking about securing their retirement has doubled by today.
“The discussions surrounding the pension reform seem to have put the issue of pensions in the spotlight and made people think more about their retirement savings and additional saving options,” added Rajasalu.
According to co-founder of NGO Rahatarkus Leonore Riitsalu, the results of the survey indicate clearly that making choices for the sake of long-term financial wellbeing is difficult. “We know that we should do something, but postponing these difficult choices is so much easier,” said Riitsalu. “Financial literacy and a satisfactory income alone are not enough to make decisions. We also need security about the future and the motivation to do something to secure our financial wellbeing. Policymakers and banks can help people with the latter by pushing them towards making calculated decisions.”
The responses were collected by way of a quantitative online survey in June and July this year. The goal was to find out what people think about the state’s pension system and to better understand people’s expectations and attitudes about pensions. 1599 second pension pillar clients of Luminor Pensions Estonia participated in the survey.