If they were free from different financial restrictions, the majority of Latvian residents would like to retire at the age of 55, according to results of DNB Bank’s survey. Every fifth respondent said 62 years and nine months is the perfect age for retirement.
41.8% of Latvian residents would like to retire at the age of 55, which is eight years earlier than the age stated in Latvian legislation – 63. The official retirement age is optimal for every fifth respondents and 18.4% of respondents mentioned 50 years as the perfect retirement age. 5.5% of respondents would like to retire at the age of 65 and 8.3% of respondents said their job gives them joy, and that they would not like to retire at all.
Respondents aged 46 – 55 most often mentioned retirement age of 55. Those aged 18-24 most often mentioned 50 as the most appropriate retirement age. «A tendency is noted here – young respondents most often mention retirement age below the official cap. This can be explained with the fact that they consider 55 years to be a respectable age, not because younger people are irresponsible and prefer an easy lifestyle. People who have already reached this age do not consider themselves old and often choose to put off retiring for some time. Opinions differ significantly among men and women. 13.7% of men would rather keep on working. Only 3.4% of women said the same. This difference is based on the difference in opinion of men and women in regards to meaningful employment, where the quality of life for men depends on their ability to work outside of home. Women, on the other hand, do not feel like their ability to work is limited when working from home,» – explains socio-anthropologist Klavs Sedlenieks.
When asked about the optimal pension amount, half of respondents mentioned that only a pension equal to 100% of their current income would guarantee them an appropriate quality of life. 37.6% of respondents admit they would be satisfied with a pension equal to 80% of their current income. 5.7% of respondents say they would afford everyday expenses with a pension equal to 80% or 50% of their current income. 2.4% of respondents said the pension size depends largely on the place where the person lives – people who live in rural areas require much less money to pay for utilities.
«Throughout their lives, people get used to a specific lifestyle and quality of life. They hope to maintain this level after retiring as well. The reality is often-times different – people are forced to adapt to lower income levels. The 2nd level pension savings are the only form of savings for the majority of Latvian residents. This is why we encourage people to start paying attention to pension programmes early on. It will help create a safety pillow to ensure financially secure retirement,» – says DNB Bank board member and vice-president Anita Berzina.