Survey: 92% of Latvian Residents Experience Financial Stress, Employers Seek Solutions

A recent Swedbank survey reveals that 92% of Latvian residents face financial stress. More than half of respondents say this stress negatively affects their emotional well-being, while about one in three report that financial worries impact their work performance. At the same time, 61% believe employers can help alleviate these concerns beyond just salary.

These findings are a significant signal for companies, as employee financial security becomes a competitive factor. Employee turnover costs companies heavily—not only in recruitment and training but also in lost productivity. Therefore, long-term investments in employee retention can be more cost-effective than constantly searching for new hires.

One tool is employer contributions to the third pension pillar. The survey shows that 66% of employees consider this benefit important or very important, but only 5% receive it from their employer. This gap indicates substantial untapped potential. Data show that employer contributions to the third pillar are growing rapidly: 19% in 2024, 26% in 2025, and 45% in the first months of 2026. The increase is especially sharp among small businesses, where contributions have risen more than 50% year-over-year. Since 2023, over 3,000 companies have received consultations on this option.

Experts note that caring for employees' financial future is not just social responsibility but also an investment in the company's own sustainability. A more stable team, lower turnover, and higher productivity are benefits that outweigh initial costs in the long run. While employer contributions to the third pension pillar do not solve all problems, they are a practical tool that helps employees feel more secure and strengthens their bond with the employer.