Tuesday , October 26 2021

They are determined to harm the old-age pension of young people



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Picture photography

Picture photography

Photo: Shutterstock

Currently, the new non-proactive, unprofitable pensioners are "embedded" in one of the conservative retirement plans on the market, said Toms Kreicbergs, general manager of SIA Indexo, on the "LA.lv" portal.

In his opinion, this situation is detrimental to the future retirement of new investors.

World practice shows that conservative retirement plans show low returns in the long run and are only suitable for investors close to retirement age.

Therefore, Indexo calls on the competent authorities to change the mechanism to determine: new inactive active two-way pensioners are "tagged" in their retirement retirement pension plan.

This would mean adding young investors to active pension schemes with the largest investments on the stock market.

Tomas Kreicbergs, executive director of the index, notes that, according to current agreements, a young person can remain in conservative retirement plans for several years or decades, which will in the long run be difficult to cover even inflation.

From a responsible investment point of view, this is absurd, stresses Kreicbergs, adding that conservative plans are suitable for older investors, as they are much better protected against fluctuations, especially in times of crisis.

"For young people who have been retired for decades, long-term profit and not short-term fluctuations are a priority," said Kreicbergs.

The Indexo letter to the public authorities calling for this issue is available here.

According to the Ministry of Social Affairs, up to 80% of new investors do not choose the investment plan for the second pillar.

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These investors enter conservative retirement plans – and in many cases they remain in the coming years. With the current e-services portal latvija.lv 44 you can check your current investment plan and savings.

Indexo is trying to improve competition and results in the Latvian investment market.

Among the leading projects are over 30 successful and well-known Latvian entrepreneurs, among them the former director of Bank Nordea Latvia Valdis Siksnis, Normunds and Janis Bergs (SAF Tehnika, Mobilly), Sven Dinsdorf (Elko), Juris Grisins Capitalia, Denis Kairan (Colliers), surgeon Kaspars Feldmanis, are sworn in by Philips Kļaviņš and Raimonds Slaidiņš and many others.

LA.lv

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