Suchergebnisse

Regular and proportionate voluntary savings in private pension funds can become an important part of oldage pensions. However, this can happen if the savings are made for a long period of time. This justifies the target group of the 3rd pension level, which are young people who have started to receive a regular income from their professional activity. One of the most discussed issues in promoting voluntary pension savings is the level of financial literacy. In addition to other motivating factors, such as financial incentives, the level of knowledge of the population about the opportunities to participate in the third pillar of pensions makes them want to build up voluntary savings. Effective communication of information to a precise target audience is one of the main tasks of government agencies in formulating pension policy. In order to assess the impact of various socio-economic factors on young people's knowledge of savings for pension formation, a survey of Latvian youth was conducted in February-March 2021, addressing youth organizations and universities. The survey is designed using closed and semi-closed questions, in several questions respondents were asked to provide ratings using the Likert scale. The survey provides answers to the question about the level of knowledge of Latvian youth about the current pension system, emphasizing the investor's right to handle investments in private pension funds, as well as the basic conditions for creating savings at the 2nd and 3rd pension levels. The task of the study was to analyze the respondents' financial literacy self-evaluation answers based on the main socio-economic factors - gender, age and income. The results of the study confirm that the level of financial literacy of young people differs according to age, gender and income level.

Regular and proportionate voluntary savings in private pension funds can become an important part of oldage pensions. However, this can happen if the savings are made for a long period of time. This justifies the target group of the 3rd pension level, which are young people who have started to receive a regular income from their professional activity. One of the most discussed issues in promoting voluntary pension savings is the level of financial literacy. In addition to other motivating factors, such as financial incentives, the level of knowledge of the population about the opportunities to participate in the third pillar of pensions makes them want to build up voluntary savings. Effective communication of information to a precise target audience is one of the main tasks of government agencies in formulating pension policy. In order to assess the impact of various socio-economic factors on young people's knowledge of savings for pension formation, a survey of Latvian youth was conducted in February-March 2021, addressing youth organizations and universities. The survey is designed using closed and semi-closed questions, in several questions respondents were asked to provide ratings using the Likert scale. The survey provides answers to the question about the level of knowledge of Latvian youth about the current pension system, emphasizing the investor's right to handle investments in private pension funds, as well as the basic conditions for creating savings at the 2nd and 3rd pension levels. The task of the study was to analyze the respondents' financial literacy self-evaluation answers based on the main socio-economic factors - gender, age and income. The results of the study confirm that the level of financial literacy of young people differs according to age, gender and income level.

The main objective of the improvements to public pension systems is to create a balanced three-pillar pension structure and increase public accountability for pension capital formation. Most pension systems are based on the first two pension system pillars – mandatory contributions in the state compulsory unfunded pension scheme and the state-funded or accumulated pension scheme in pension funds. However, the pension level adequacy has been reached by adding the third pension system pillar - voluntary investments in private pension funds. Governments are private pension system policymakers by defining a legal framework and providing tax incentives for voluntary investments for retirement. In the Baltic countries – Estonia, Latvia, and Lithuania, the third pension pillar is at an early stage of its development, and as such, should be particularly stimulated. This research focuses on the tax incentives utilized by the governments of Estonia, Latvia, and Lithuania and aims to ascertain and compare the effectiveness of the tax incentive policies applied to the third pension pillar by the governments of the three Baltic countries. It questions the effectiveness of the incentive mechanisms the governments of the Baltic countries have chosen, which include involving most of the population in the private pension saving programs. The research methods used are the analysis of scientific publications on the previously conducted research, acts of legislation of Baltic countries, as well as an analytical study of statistical data on the development of voluntary pension fund contributions in Estonia, Latvia, and Lithuania. The research results indicate that the tax incentives are the mechanism to motivate the population to create savings in the third pension pillar in all three Baltic countries. However, Latvia being the country with the highest coverage rate of the third pension pillar has the most unfavorable conditions for creating savings. There are no tax incentives on returns on investment and tax-exempt withdrawals in Latvia, while Estonia and Lithuania have all positions tax-exempt. A more detailed analysis of the tax incentives at the contribution stage explains the underdeveloped third pension pillar in Lithuania, as Lithuanian personal income tax reliefs are targeted at low or medium wages or gross income. The research has highlighted the impact of tax incentives on voluntary savings for retirement in the three Baltic countries, opening a discussion about the effectiveness of governments' applied mechanisms.

Pension system formation is one of the questions on the daily agenda for most countries of the world. Most attention and discussion focus on the first two pension system pillars – state compulsory unfunded pension scheme and the state-funded or accumulated pension scheme in pension funds, both based on mandatory contributions. Private voluntary investments are the "third pillar" of pension systems and the gear to ensure an adequate level of income at retirement age by creating private pension funds. Voluntary savings are becoming the source of retirement income received on a monthly basis in line with the progress of private pension funds and expansion of the choice of pension schemes. This research task is to evaluate the 3rd pension pillar's current results in Latvia and create a comparison with Lithuania and Estonia. The research outlines the common and the differences between engagement in financial future planning decisions of the population in Baltic States and existing legislative frameworks to promote the formation of private pension funds. It rises the research question on the importance of the role of voluntary savings in each country as well as gives recommendations for further voluntary savings advancement. Research methods used are the analysis of scientific publications, acts of legislation and previously conducted research, analysis of statistical data on the development of voluntary pension fund contributions in Latvia and comparison with Lithuania and Estonia.

The main objective of the improvements to public pension systems is to create a balanced three-pillar pension structure and increase public accountability for pension capital formation. Most pension systems are based on the first two pension system pillars – mandatory contributions in the state compulsory unfunded pension scheme and the state-funded or accumulated pension scheme in pension funds. However, the pension level adequacy has been reached by adding the third pension system pillar - voluntary investments in private pension funds. Governments are private pension system policymakers by defining a legal framework and providing tax incentives for voluntary investments for retirement. In the Baltic countries – Estonia, Latvia, and Lithuania, the third pension pillar is at an early stage of its development, and as such, should be particularly stimulated. This research focuses on the tax incentives utilized by the governments of Estonia, Latvia, and Lithuania and aims to ascertain and compare the effectiveness of the tax incentive policies applied to the third pension pillar by the governments of the three Baltic countries. It questions the effectiveness of the incentive mechanisms the governments of the Baltic countries have chosen, which include involving most of the population in the private pension saving programs. The research methods used are the analysis of scientific publications on the previously conducted research, acts of legislation of Baltic countries, as well as an analytical study of statistical data on the development of voluntary pension fund contributions in Estonia, Latvia, and Lithuania. The research results indicate that the tax incentives are the mechanism to motivate the population to create savings in the third pension pillar in all three Baltic countries. However, Latvia being the country with the highest coverage rate of the third pension pillar has the most unfavorable conditions for creating savings. There are no tax incentives on returns on investment and tax-exempt withdrawals in ...

Pension systems have become one of the main priorities for the national governments. Developed countries population is getting older by putting the pressure on the state budgets and work age people tax load. The current pension system in Latvia performs according to regulation of state compulsory unfunded pension scheme since 1996 and regulation of the state funded or accumulated pension scheme since 2001. The third pension system pillar is private voluntary pension schemes realized in form of people contributions into pension funds and life insurance policies. Aim of the research – deeper analyses of voluntary private investments as the pension system part and its development challenges in Latvia. Research methods: scientific publications and previous conducted research analysis; analysis of time series on private pension fund developments in Latvia and comparisons with the situation in other OECD countries. The authors were looking for answer on the question – can voluntary private investments cover the gap between pre-retirement and after-retirement income of population in Latvia and what are the pre-conditions for it. ; The research was supported by the NATIONAL RESEARCH PROGRAMME "LATVIAN HERITAGE AND FUTURE CHALLENGES FOR THE SUSTAINABILITY OF THE STATE" project "CHALLENGES FOR THE LATVIAN STATE AND SOCIETY AND THE SOLUTIONS IN INTERNATIONAL CONTEXT" (INTERFRAME-LV, Project No.VPP-IZM-2018/1-0005)

Due to the implementation of new technologies and orientation on digital solutions the communication and sales channels have changed dramatically. Information and client service on-line availability presents strong advantages for business, state agencies as well as customers. However, lack of personal interaction during the communication and sales process can make it difficult for people to understand and even frustrate their desire for a product or service. The purpose of the research is to analyse the digitalization impact on voluntary savings for retirement in Latvia and make comparisons with other countries. The voluntary pension schemes are the part of pension system and its third pillar created to strengthen and foster sustainability and adequacy of people income level after retirement. Main stakeholders in voluntary savings for retirement are pension funds as well as government agencies carrying out the national pension system policy. Among other motivation factors the people knowledge level about the necessity to participate in third pension level causes their willingness to create voluntary savings. Service providers chosen marketing and governments realized legislation policy impact the level of people engagement in private pensions and make a basis for people retirement period living standards. Research methods used are analysis of scientific publications and previous conducted research, analysis of statistical data and sales and communication channels in Latvia. The results of analyses show the challenges that service providers are facing and steps that should be taken to promote the voluntary savings in a digital era. ; The research was supported by the NATIONAL RESEARCH PROGRAMME "LATVIAN HERITAGE AND FUTURE CHALLENGES FOR THE SUSTAINABILITY OF THE STATE" project "CHALLENGES FOR THE LATVIAN STATE AND SOCIETY AND THE SOLUTIONS IN INTERNATIONAL CONTEXT" (INTERFRAME-LV, Project No.VPP-IZM-2018/1-0005)

Pension systems have become one of the main priorities for the national governments. Developed countries population is getting older by putting the pressure on the state budgets and work age people tax load. The current pension system in Latvia performs according to regulation of state compulsory unfunded pension scheme since 1996 and regulation of the state funded or accumulated pension scheme since 2001. The third pension system pillar is private voluntary pension schemes realized in form of people contributions into pension funds and life insurance policies. Aim of the research – deeper analyses of voluntary private investments as the pension system part and its development challenges in Latvia. Research methods: scientific publications and previous conducted research analysis; analysis of time series on private pension fund developments in Latvia and comparisons with the situation in other OECD countries. The authors were looking for answer on the question – can voluntary private investments cover the gap between pre-retirement and after-retirement income of population in Latvia and what are the pre-conditions for it.KEYWORDS: Pension system, voluntary savings, financial literacy, Bancassurance.JEL CODES: M10; M38DOI: http://dx.doi.org/10.15181/rfds.v29i3.1993