Estonians are not rushing to change their pension funds

SEB’s survey reveals that during the period for changing pension funds, less than five per cent of people saving in the second pension pillar choose a new fund.

“The level of awareness and sense of responsibility for one’s pension assets has grown gradually, and clients are making more reasoned decisions when it comes to choosing a fund and a service provider. The SEB Retirement Readiness survey showed that people saving for their pension are beginning to place greater value on the sense of security that the service provider will continue to remain on the market in the future. They also appreciate the option of coming in for a consultation to find the best solution in which to accumulate their assets. They are also inquiring more and more about the administration fees of the funds and fees related to exchanging their fund, says Indrek Holst, Head of SEB Elu- ja Pensionikindlustus.

The last period for changing pension funds revealed that 70 per cent of the people who exchanged their fund chose a share-based fund over their conservative and balanced fund. Likewise, people up to 30 years of age moved from the SEB Conservative Pension Fund to the SEB Energetic Pension Fund, and people aged 31–50 chose the SEB Progressive Pension Fund over the SEB Conservative Pension Fund.

“When choosing a suitable pension fund, there are two aspects to be considered—how much time you have until retirement age and how big are the risks you want to take in the name of a greater rate of return. The closer retirement age is, the more one should think about reducing the risks in their pension fund. Therefore, looking at the results of the survey, it can be said that the people saving for their pension are rather moving towards the pension funds that suit them the best. This, again, shows the growing awareness. However, if you want to move to another service provider with your pension assets, then it is important to make it clear to yourself, what is there to win and what to lose with the transaction,” added Holst.

* The data used is based on the Pension Readiness Index Survey conducted by SEB and market-research company TNS at the end of 2015, in all three of the Baltic States. The survey covered 1700 clients.

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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