Young people’s interest in the second pension pillar is low

SEB survey reveals that one-third of people between the ages of 18 and 25 in Estonia are unaware of which second pension pillar fund their savings are being accumulated in.

“Young people’s general awareness of and interest in pension is low. Retirement age is seen as being in the distant future, while failing to consider the long-term effect of decisions made today. For instance, if an informed selection of the second pension pillar fund is not made, the state selects the fund at random from among the available conservative funds, which may not be the best solution in accordance with actual expectations,” commented Indrek Holst, Chairman of the Management Board of SEB Elu- ja Pensionikindlustus.

Comparing Estonian-speaking and Russian-speaking young people, their awareness of the second pension pillar varies. While 27 per cent of Estonian-speaking young people do not know which fund their savings are accumulated in, then a total 44 per cent of young Russian-speaking people are not aware of the fund of their choice.

“Data obtained from the survey indicates that more awareness should be spread among young Russian-speaking people. Greater attention should also be paid to young people’s need for saving for pension and long-term savings, both at the national level and at the level of banks / insurance companies providing pension services. One opportunity to obtain the necessary information and knowledge to make an informed pension savings decision is to come to a personal consultation at the bank,” added Holst.

* The data used is based on a survey conducted by SEB in all three Baltic States in 2015. A total of 2002 respondents participated in the survey.


For more information:

Maarja Gavronski
Project Manager for Communication
Marketing and Communications Division
SEB Pank

Phone +372 665 5270
Mobile +372 5656 5785
Address Tornimäe 2, 15010 Tallinn
E-mail maarja.gavronski@seb.ee
www.seb.ee