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SEB: 70% Estonians don't believe in sustainability of pensions

BC, Tallinn, 09.03.2016.Print version
Even though residents of Estonia are better prepared for retirement than people in Latvia and Lithuania, more than 70% of Estonians don't believe that the present pension system is sustainable, it appears from the Baltic Retirement Readiness Index Survey based on a poll taken by TNS, cites LETA.

At the same time, 36% of respondents find the pension system to be fair. The share of those believing that the government will provide them with a pension of reasonable size has dropped by 2 percentage points year over year to 29%.


Indrek Holst, board chairman of SEB Life and Pension Insurance, said that according to estimates the first and second pillars of the pension system will provide a person with 40% of their pre-retirement income, compared with 90% of pre-retirement income that respondents want their pension to be worth.


Holst said that, against this background, only 14% of respondents are saving regularly by putting aside at least 100 euros a month into a third pillar pension fund or a saving account.

The study also indicates that 28% of working respondents would like the employer to make payments into their third pillar pension fund.


SEB conducted the Retiremen Readiness Index Survey simultaneously in all the three Baltic countries. Altogether 1,700 individuals were interviewed by pollster TNS for the purpose of the survey in October 2015.


The first similar survey was conducted in November 2014.

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