OREANDA-NEWS. August 22, 2012. Estonians hope to receive 53.3 per cent of their current income after they retire. At the same time, Latvians and Lithuanians believe that their pension will be 44.4 per cent and 51.9 per cent of their current income, respectively, as shown in the survey conducted by SEB and TNS Emor among the residents of the Baltic States, reported the press-centre of SEB.

A majority of the Baltic people say that they do not at all save for their pension and just 15 per cent are interested in the amount of their future pension. People with a higher education, aged between 30 and 39, living in capitals and major cities where incomes are above average are among those who save for their pension the most. Estonians associate their pension age with serenity and taking care of their grandchildren, Lithuanians with illnesses and lack of money.

“The survey also indicates that people start thinking about their pension when they are about 50 years old. Other possible reasons for postponing saving for pension are likely to be emotional – many believe that their pension will be negligent and thus avoid thinking about it,” said Indrek Holst, chairman of the management board of SEB Elu- ja Pensionikindlustus.

According to statistics, Estonians transfer to the third pillar pension fund EUR 36 per month, while Lithuanians and Latvians contribute with EUR 35.8 and 21.5, respectively. Estonians also estimate that their state-funded pension will be the smallest among the Baltic States, believing that it will be 42 per cent of their total pre-pension income. Latvians and Lithuanians believe that the share of the state-funded pension will be 61 and 72 per cent, respectively. Those who are currently not contributing to the third pillar pension funds due to financial constraints say that they would save if their income was by EUR 300 or 400 higher.

According to SEB’s forecast, in Estonia EUR 30 billion will need to be accumulated in the second and third pension pillars by 2040 for this generation to receive a pension they can live on. Over the past ten years, approximately one billion euros has been accumulated. At this rate, the next thirty years will see the value of pension assets reach EUR 12 billion which, however, will not be enough for all the people of Estonia to receive a decent pension.

The sample survey, conducted this spring in Estonia, Latvia and Lithuania, covered 3026 respondents aged between 15 and 74.