Even though this year, Latvian residents are the most financially secure in the event of sudden changes, compared to last year, in comparison to the rest of Baltic States, Latvia is still the weakest in terms of financial security. The Swedbank financial security index evidences this fact.
Still, financial security only makes up half of what it should among Latvian residents. This is evidenced by a population survey – 42% of respondents evaluate their family as completely financially insecure.
The deficit of the residents’ financial security decreased by two percent point in the first quarter – from 53% last year to 51% this year. It makes up 5 500 LVL per one employed person. Meanwhile, in Lithuania financial security deficit this year is 42% (41% last year), but in Estonia 44% (46% last year). Therefore Latvia’s residents are still the most financially insecure in the Baltics.
The population survey carried out by Swedbank shows that the proportion of residents who evaluate themselves and their families as completely financially insecure increased this year (from 32% last year to 42% this year). Women (84%) of the age of 40-49 (90%) feel more financially insecure in critical situations, as we as people who live alone (88%). Only 2% of Latvian residents feel financially secure right now.
«A positive tendency has been noted in the last year – more and more people have begun planning the financial stability of their families, covering against potential risks, as well as creating a “safety pillow” from savings. In legal terms, as the knowledge and interest of residents about financial security increases, so do their fears that their savings will not be enough for unforeseen consequences. This is why every resident must not leave the protection of his family’s financial security for tomorrow, but solve it today,»- Reinis Jansons, Swedbank investment product department manager, comments.
43% of Latvian residents often mention the income of other family members as their main guaranty for financial security, 24% – real estate, but 25% – state secured benefits. People of the age of 50 and older (20%) and families with at least three children (37%) more often rely on state secured benefits.
With the increase of residents’ income, the role of real estate, life insurance and financial savings in the amount of at least three monthly wages, becomes more and more important. Meanwhile, residents with higher education find life insurance and financial savings to be more important in ensuring financial security of their families.
«The fact that the number of residents who do not think about financial security at all decreased (from 10% last year to 6% this year), allows the thought that with the increase of residents’ savings and the decrease of the overall level of commitment, the deficit of residents’ financial security will keep decreasing in Latvia even further,»- Reinis Jansons adds.