Estonian parents saving for their children more actively than their Baltic neighbours

Estonian parents allocate more resources to providing for their children’s future than their Baltic neighbours. An average Estonian parent saves EUR 37 per month for their child. At the same time, Latvian and Lithuanian parents contribute approximately EUR 10 less to their children’s endowment insurance, information available to SEB Elu- ja Pensionikindlustus indicates.

Parents in Estonia begin saving for their children sooner than those in Latvia or Lithuania. Last year, the average age of Estonian children at the time of the conclusion of a savings contract was four years, whereas in Lithuania it was five years. Latvian parents begin saving for their children when they go to school for the first time, at the age of six or seven. Thus, the average period of an insurance contract is longer – and also the average amount saved is higher – in Estonia than in Latvia or Lithuania.

“For many families, it is a difficult issue: How do you arrange your family’s financial priorities so that money would be left over after various expenses to save for your children’s future? If parents make monthly insurance contributions in the amount of EUR 35 for 18 years, they will have accumulated approximately EUR 7720 by the end of the period, which is a considerable amount for funding their children’s education or embarking on an independent life. In addition to savings contracts, various life insurance covers are available,” says Triin Messimas, Management Board Member of SEB Elu- ja Pensionikindlustus.

According to SEB Elu- ja Pensionikindlustus, it is mothers who are likelier to take care of the accumulation of start-up capital for their children’s future. However, there is also an uptick in the trend of fathers involved in providing for their children’s financial welfare: in 2015, men in Estonia concluded 43% of the savings contracts for children, 7% more than in 2012. In Latvia, too, men’s share is growing: 37% in 2015, compared to 29% in 2012. Nevertheless, Lithuania boasts the most men involved in saving for their children: in 2015, men concluded 45% of the contracts there.


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

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