Only 200,000 Latvians Voluntarily Save for Retirement; Low Youth Participation Raises Concerns
Data from the Bank of Latvia shows that only about 200,000 residents make voluntary savings for the future, with a worryingly low number of young people. Although total savings have tripled over the past decade, a third of contract holders have not made contributions in the last year.
According to data compiled by the Bank of Latvia, only approximately 200,000 residents are making voluntary savings for the future, with a disturbingly low proportion of young people among them. Over the last ten years, third-pillar pension savings have tripled, and the number of savers has doubled. Total voluntary fund savings have reached 1.15 billion euros, roughly one-tenth of the amount saved in the second pillar.
In total, Latvia has 465,000 participants in long-term voluntary savings, encompassing both third-pillar pensions and savings life insurance. However, about one-third of contract holders have not made any contributions in the past year, meaning only 304,000 contracts are considered active. While the overall trend is encouraging, the low youth participation and the high share of inactive contracts raise concerns about future retirement security.
