Analytics, Estonia, Financial Services, Pensioners

Altogether 13% of those seeking to invest their savings plan to use them to purchase real estate, slightly less, or 11 percent, intend to transfer them into an investment or securities account. Cryptocurrency and shares are also deemed potential investment opportunities by 7% of this segment, while 3% said they would use the funds to contribute to their own business, Luminor said.

"The average sum accumulated in the second pillar fund is insufficient for purchasing real estate. Certainly, there are people, who are able to use their retirement savings for buying real estate; however, they are rather a strong exception. Therefore, one should see exactly how much money they have really accumulated when making investment plans, and also talk with experts about which opportunities can be trusted," Rasmus Pikkani, head of the Baltic pension unit at Luminor, said.

Survey results showed that there are also people who wish to spend the accumulated pension assets -- 7% would pay back loans or debts, 4% would spend for personal reasons, and 1% would use the pension money as their own contribution for a loan. 12% would redirect their pension money within the bank -- 6% to a fixed-term deposit and 6% to the third pillar fund.

Around 41% of people whose mother tongue is Estonian intend to keep their money in the second pillar fund, whereas that is only the case for 30% of Russian-speaking people. 44% of those who believe they will retire, and 28% of those who believe they will not retire plan to keep the money in the second pillar.

Keeping money in the pension fund is also influenced by independent investment experience -- the less experience one has, the greater the likelihood that the person will continue to keep their assets in the second pillar. 45% of those who have not even considered investing in the past, and 40% of those who have considered investing but have not done it, wish to keep their money in the second pillar fund. 

Among those who have some experience in investing and those who are investing on a regular basis, a total of 33% and 31%, respectively, plan to keep their money in the second pension pillar.

Pikkani added that even though the survey results show people's current attitudes and future plans, they cannot be used to make accurate predictions.

"The actual percentages of people remaining and leaving and the consequences of the reform extensively depend on how difficult or simple the whole process will be, and how this topic will be discussed in the public sphere," Pikkani said.

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 1,599 second pillar fund clients of Luminor Pensions Estonia participated in the survey.