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International Internet Magazine. Baltic States news & analytics Thursday, 30.05.2024, 23:45

SEB: 31% of pension funds’ customers in Estonia plan to continue payments

Juhan Tere, BC, Tallinn, 27.07.2009.Print version
According to a poll commissioned by SEB Pank in Estonia, 31% of the customers of the second pillar pension funds plan to continue making payments even after the State will suspend them in 2010, writes Postimees Online/LETA.

33% of 3,040 customers of SEB who were polled in the beginning of July do not plan to continue making payments. 48% of Russian-speaking customers in Estonia do not indent to continue making payments.


36% of customers have not yet decided whether or not to continue their payments.


The most usual reason for continuing payments into pension funds is the wish to continue stable growth of their pension assets during the difficult times as well – this reason was named by 48% of customers who intend to continue making payments.


15% estimated that as they are unable to withdraw funds from the pension funds, they would much rather continue making payments. 14% stated that the second pillar is their only pension investment. Another 14% said that 2% of gross pay into the second pillar pension funds is a small amount which would not bring much financial gain anyway.


The most usual reason for not continuing payments was that there is no sense in making payments into the pension funds when the State will not contribute anything in it. This reason was named by 49% of customers who plan to continue making payments. 61% of Russian-speaking customers stated this reason.


CEO of SEB Estonia’s Life and Pension Insurance subsidiary Indrek Holst estimated that after the decision to suspend payments, the State needs to take extra steps to restore the confidence in the pension system.

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