Survey: 67% of Latvians Consider Second Pension Pillar Main Retirement Savings

Pension Savings Priorities in Latvia

A survey conducted by Luminor Bank reveals that 67% of Latvian residents consider the second pension pillar as their main instrument for retirement savings. The data was obtained from 1,004 respondents aged 18 to 74 in June 2026, in cooperation with the research agency Norstat.

Meanwhile, the third pension pillar is used by 33% of respondents. Of those, 29% make contributions themselves, while 4% indicated that their employer contributes on their behalf.

Atis Krūmiņš, Head of Pension and Asset Management at Luminor Bank, notes that Latvia's pension system is designed so that all three pillars complement each other. The second pillar provides a solid foundation for long-term savings, while the voluntary third pillar allows individuals to supplement it according to their means.

Although the survey shows a slight decline in the proportion of people saving in the third pillar, Luminor Bank data indicate the opposite – among the bank's clients, voluntary contributions to the third pillar increased by 15% compared to 2024, and the number of participants also grew. Krūmiņš adds that a similar trend is observed nationwide.

Among other savings methods, 15% of respondents use a savings account or similar instrument, 10% invest in financial instruments, and 9% save in cash. An equal share (9%) admitted they do not save for retirement at all.

Krūmiņš emphasizes the importance of regularity and understanding of various savings options in long-term financial planning. He advises against relying on a single savings type, instead advocating for a balanced approach: monitoring second pillar savings, contributing to the third pillar when possible, and considering other investment solutions. The earlier one starts planning future finances, the greater the chance of building a stable financial foundation for retirement.