Latviski English По-русски
Ceturtdiena 22.02.2018 | Name days: Rigonda, Adrians, Ārija

Survey: majority of inhabitants wish pension funds could be inherited

(No Ratings Yet)

80% of the Latvian population support the proposal to inherit accrued money in the 2nd Tier pension scheme. At the same time, 82% of the inhabitants of Latvia do not support the plan to raise retirement age from 62 to 65 years, indicates the survey conducted by Snapshot.

The survey also demonstrates a relatively low confidence in the pension system. Only about a third of the population or 32% consider the accrued funds in the 2nd Tier to be their own money.

«The survey data show that inhabitants’ confidence in the social insurance system is low. The retirement age increase in Latvia is an inevitable process, which is linked to the rapid ageing of society, increasing emigration indicators and government’s ill-advised adjustments to the social insurance system,» points the economist Edgars Volskis (Voļskis).

He notes that the continuous adjustments of 2nd Tier pension scheme conditions, in order to achieve government’s short-term fiscal objectives, not only undermine the long-term stability of pension system, but increases society’s mistrust in the social insurance system as a whole; thus, people lose motivation to make social insurance contributions in accordance with the procedure laid down by the legislation.

«Consequently, from the workers’ point of view the 2nd Tier funded capital is not linked with provisions for the expected pension amount in the future. The possibility to receive full pension through state support after retiring is also questioned. Therefore, one of the solutions would be the opportunity to inherit the 2nd Tier pension capital,» suggests Volskis.

To his mind, this would slightly build the inhabitants’ trust and motivate them to fairly pay taxes. «This is a homework that needs to be done before the budget approval, because from the economic point of view promises about the compensation of 2nd Tier pension scheme contributions in the future are dubious. The Latvian population survey data clearly indicates that such steps would even partly strengthen the society’s faith in theLatvian social insurance system,» the economist asserts.

The plan to raise the pension age from 62 to 65 years is not supported by women and men in Latvia – 84% and 80%, respectively. Only 9% of the respondents positively regard the plan to gradually increase retirement age. While 9% of the surveyed did not have a particular opinion on this issue or were not aware of such plan.

Assessing the data in terms of demographic aspect, it is concluded that negative attitude towards the retirement age raise tends to increase with the age and retirement time approaching. In the age group from 40 to 74 years such plans are not supported by nearly 90% of the residents. Highly negative attitude towards increasing the retirement age was for Russian or other nationalities representatives – 91% of the surveyed in this group rebuffs the retirement age increase.

Furthermore, only 7% of Latvia’s population regards the accrued money in the 2nd Tier pension scheme as theirs, regularly keeping track of changes to the volume of accumulated funds. The inhabitants’ passivity to manage these funds can be explained with the lack of experience and skills in the financial sector, and also with disbelief that such involvement would affect the yield.

The Latvian society positively views the opportunity to inherit accrued pension funds – 80% of the respondents supported this proposal, while nearly half of the surveyed (48%) notes this would increase their motivation to pay taxes.

Leave a reply

  1. fred_z says:

    This could possiby provide some incentives for making pension contributions but will ut be enough?

    Thumb up 0 Thumb down 0

  2. nummi says:

    This would only be fair.

    Thumb up 0 Thumb down 0

SEB Bank: more employment options will open up and workers will become more selective

«It is becoming easier to change jobs nowadays. The largest selection of employment options are found in regional centres and cities, especially Riga and Pieriga. We see fewer employment options in regions even though there is still considerable demand for workers there,» predicts SEB Bank’s macroeconomics expert Dainis Gašpuitis.

ABLV Bank’s manager claims the bank is ready for cancellation of payment restrictions

ABLV Bank is ready for cancellation of payment restrictions, said the bank’s chairman Ernests Bernis during a press-conference on Thursday, 22 February.

62.9% of Latvia’s population was employed in 2017

Compared to the year before, in 2017 employment rate grew by 1.3 percentage points and number of employed persons by 1.5 thousand. Employment rate among men grew faster than among women – by 1.6 percentage points and 1.0 percentage points, respectively. 894.8 thousand people or 62.9 % of Latvia population aged 15–74 were employed in 2017.

Lithuania and Latvia: the tale between two sisters marked with rivalry

Relations between Lithuania and Latvia, two tight-knit Baltic neighbours, may exemplify a sisterly relationship from the first sight, but just over the course of a single week, several pings rang, signalling that rivalry is, and has always been, a component of coexistence.

Lembergs unable to organize his private life because of intense court proceedings

Lembergs unable to organize his private life because of intense court proceedings

Unemployment level in Latvia decreased to 8.7% in 2017

85.4 thousand people aged 15–74 in Latvia were unemployed in 2017. Compared to 2016, the number of unemployed persons has dropped by 9.9 thousand or 10.4 %.

Council member: ECB is openly dissatisfied with restrictions imposed on Rimšēvičs

The European Central Bank (ECB) is openly dissatisfied with restrictions imposed on one of its council members – governor of the Bank of Latvia Ilmārs Rimšēvičs, said council member of the Bank of Latvia Edvards Kušners in an interview to 900 seconds programme of LNT.

Defence expenditures in Latvia planned at EUR 234 million in 2018

Latvian government plans to spend EUR 234 million on defence projects, including procurement of transports, ammunition, armaments and individual equipment, in 2018 as confirmed by Defence Ministry.

Ministry cancels mandatory procurement component permits for five CHP plants

Latvia’s Economy Ministry has made a decision to cancel the permit to sell electricity within mandatory procurement component for five other renewable energy co-generation plants plants: SIA Madonas Eko, SIA Eiro-Āzijas investment agency, SIA EVOKEM, SIA M Parks, and SIA Eco Latvis.

NSC proposes Maizītis for a second term as Chief of Constitution Protection Bureau

Members of Latvia’s National Security Council have decided to propose the current head of the Constitution Protection Bureau Jānis Maizītis for another term at the helm of this institution, as BNN was informed by the State President’s Chancellery.

Latvijas gāze’s subsidiary Gaso proposes reducing gas transmission price

Latvijas gāze’s subsidiary Gase has turned to Public Utilities Commission with a proposal for a new natural gas transmission system service’s tariff project, providing for a reducing gas transmission price by 18-46% for more than 95% gas consumers.

FCMC invites Bank of Latvia to provide ABLV Bank with yet another emergency loan

The Finance and Capital Market Commission (FCMC) has invited the Bank of Latvia to issue ABLV Bank another emergency loan.

Crime rate in 2017 was the lowest in Latvia’s history

Last year’s crime rate turned out the lowest in Latvia’s history, as reported by Prosecutor General Ēriks Kalnmeiers in his annual report.

LEC: government priorities should include searching for causes and solutions, not the guilty

Latvian Employers’ Confederation (LEC) is worried about ongoing events and their negative effect on the stability and future development of the country’s economy. LEC believes that stabilization of the financial situation requires careful coordination of actions between institutions and the government.

Producer price level in Latvia grew 0.9% in January

Compared to December 2017, level of producer prices in Latvian industry rose by 0.9 % in January 2018. Prices of products sold on the domestic market went up by 1.2 % and prices of exported products by 0.6 %.

Latvian President believes country’s financial system is stable; prime minister plans to report to European Council

«Latvia’s financial system is stable, and there is no reason to worry about possible instability of the banking system. Banks continue working as usual,» says the President of Latvia Raimonds Vējonis.

Corruption Perception Index in Latvia experienced no major changes in 2017

Latvia’s positions did not improve much in Transparency International’s compiled Corruption Perception Index 2017, said Delna – Society for Openness acting director Liene Gātere in an interview to Rīta panorāma programme.

Latvian citizens arrested in Britain under suspicions of organizing slavery

Five people were arrested in a joint international operation by Latvian and British law enforcement operatives, as confirmed by Latvian State Police.

Opinion: Russia is trying to use the situation to create chaos in Latvia

Russia is trying to use the established situation to create chaos in Latvia. Efforts, however, are fated to fail, says chairman of Saeima’s Defence, Internal Affairs and Corruption Prevention Committee Ainars Latkovskis.

Dismissal requested for Latvia’s Finance Minister; parties worried about finance sector sinking deeper

Latvia’s Finance Minister Dana Reizniece-Ozola has failed to prevent the decision made by United States Department of the Treasury, which is ruinous for the country’s financial sector and humiliating for its reputation, says chairman of New Conservative Party Jānis Bordāns.

Defence Ministry: a massive information campaign is being realized against Latvia

Considering events of the last several days in the country’s banking sector and the arrest of the governor of the Bank of Latvia – Ilmārs Rimšēvičs – it is entirely possible that someone is currently realizing a massive information operation. Its structure and execution is not unlike the one observed in USA, France and Germany during the pre-election period, BNN was told by Latvia’s Defence Ministry.

Latvian parliament to search for ways to dismiss current Bank of Latvia governor

Members of Latvia’s Saeima plan to search for a solution in the matter regarding the possible dismissal of the governor of the Bank of Latvia Ilmārs Rimšēvičs.

Bank of Latvia governor: I have received death threats

«This situation is incredibly complicated. This situation is quite possibly the most complicated one I have ever been in. I feel a great deal of support from people I don’t know, as well as my friends and family members. I have decided to not back down – I am innocent. The the people attacking my reputation have only one goal in mind – to have me step down,» said the governor of the Bank of Latvia Ilmārs Rimšēvičs during a press conference on Tuesday, 20 February.

Proportion of people working in Latvia’s culture sector is larger than the average in EU

The number of people working in Latvia’s culture sector is equal to 4.5% of the total number of employed people in the country. This proportion is also larger than the average one across the European Union, according to data published by Eurostat.

Ministry: idea for compulsory secondary education should be put on hold for now

Considering that Latvia’s Education and Science Ministry has several ongoing industry reforms, it would be best to put the proposal for compulsory secondary education on hold, said Education and Science Minister Kārlis Šadurskis during a meeting of Saeima’s Education, Culture and Science Committee.