What Is the Real Average Second Pillar Pension Savings in Latvia? Data Reveals Major Differences
Bank of Latvia economists, analyzing VSAA data, show that the average second pillar pension savings vary significantly depending on the group examined—from €7,568 for all participants to €14,383 for long-term contributors.
Since early 2026, Latvia has been debating the future of the funded pension scheme (second pillar), as total savings exceeded €10.4 billion in May. For informed decisions, precise understanding of individual savings is crucial.
According to the State Social Insurance Agency (VSAA), at the beginning of 2026 over 1.3 million people had active savings, with an average of €7,568. However, this figure is depressed because it includes those who no longer contribute—around 435,000 people, such as emigrants or short-term participants. 7% of members have contributed for less than a year.
If only those who contributed in 2025 are considered, the average rises to €10,686. Among people aged 45 and older who were active in 2025, the average is €13,187. In an even narrower group—those aged 45+ with at least 18 years of contributions—the average is €14,383.
For pre-retirees (ages 63–64) with a contribution history of 20 years or more, the average is €12,561, but this generation started working before the second pillar existed. Future retirees who have been contributing from the start face a brighter outlook: today's 45-year-olds, if they continue contributions for another 20 years with a 2–5% annual return, could accumulate between €59,200 and €88,600 by age 65. That would translate into a monthly pension supplement of €247 to €369.
The authors stress that when evaluating average savings, one must distinguish between full system participants and those who have only been in it temporarily.
