Financial Services, Funds, Good for Business, Latvia, Pensioners

By the end of the third quarter of this year the capital accumulated in the second-pillar pension scheme totaled EUR 2.647 bln, including EUR 2.2 bln in contributions by the pension scheme participants and EUR 432 mln in profit ensured by the pension scheme managers.

The average value of assets accumulated per participant of this pension scheme is EUR 2,103. The average value increased by 5% or EUR 106 during the third quarter of 2016.

Most of the assets - 38.4% or more than EUR 1 bln - have been invested in Latvia.

The average annual yield of the second-pillar pension scheme is 3.24%.

Latvia has a three-pillar pension system. The first-pillar pensions are paid to the existing pensioners from the social contributions made to the state budget. The second or government-funded pension level implies that part of the social contributions is invested in the finance sector, ensuring bigger pensions in the future. The third pillar is operated by private pension funds based on voluntary contributions.