Two-thirds of people are planning to continue saving in pillar II
Luminor’s Estonian pension survey revealed that nearly 64% of people wish to continue saving in the II pension pillar, even after doing so becomes voluntary. Fewer than one third, i.e. 32% plan to stop saving. The remaining respondents have not joined the II pillar.
According to Rasmus Pikkani, head of Luminor's Baltic Pension Department, the results showed that there are slightly more people who will continue to save among those who are middle aged than those who are young. ‘This difference is understandable, since young people are dealing with other financial questions, which is why their pension is of secondary importance to them. At the same time, in a country in which the population is ageing, the question of saving for retirement is an increasingly important part of personal financial planning. Reform creates the danger that a person may slip up when it comes to planning money matters at the beginning of their life,’ commented Pikkani.
The choice is also influenced by independent investment experience: the less there is, the greater the likelihood that the person will continue to invest in the II pillar. Among those who have previously invested on their own, 68% wish to continue investing. Among those who have some experience in investing, and those who are investing on a regular basis, a total of 59% and 49%, respectively, plan to continue investing in the II pillar.
The decision also depends on whether a person believes that they will retire. A total of 69% of those who believe they will retire are planning to continue saving in the II pillar, along with 53% of those who do not believe that they will retire.
While 65% of Estonian language speakers wish to continue saving in the II pillar after it becomes voluntary, in the case of Russian speakers the rate is slightly lower: 58%.
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.