Wednesday , May 19 2021

Determined to endanger the retirement of future young people







Illustrative photo

Illustrative photo

Photo: Shutterstock

At present, the new non-proactive non-active retirees are "embedded" in one of the conservative pension plans on the market, Toms Kreicbergs, Managing Director of SIA Indexo, told the portal, "LA.lv".

According to him, this situation damaged the future retirement of new investors.

Practices around the world show that conservative pension plans show low profitability in the long run and are only suitable for investors who are approaching retirement age.

Therefore, Indexo invited the authority responsible for changing the mechanism by stipulating: new 2-level non-active pensioners who were "displayed" in their retirement age pension programs.

This means that young investors are added to active retirement plans with maximum investment in the stock market.

Thomson Kreicbergs, CEO of Indexo, noted that under current arrangements, young people can remain conservative retirement plans for years or years, which in the end will be difficult to cover even inflation.

From a responsible investment perspective, this makes no sense, emphasizes Kreicberg, adding that conservative plans are suitable for older investors because they are far more protected from fluctuations, especially during times of crisis.

"For young people, who have retired for decades, the priority is long-term benefits rather than short-term fluctuations," Kreicbergs said.

Indexo's letter to public authorities calling for this issue can be found here.

According to the Ministry of Welfare data, up to 80% of new investors themselves do not choose investment plans for the second pillar.

Related article

These investors are entering a conservative retirement plan – and in many ways they remain for years to come. You can check the current pillar 2 investment plan and savings using the latvija.lv 44 e-service portal.

Indexo is struggling to increase competition and produce the Latvian investment market.

Among the project leaders there were more than 30 Latvian entrepreneurs who were successful and well known to the public, including former Branch Managers of Bank Nordea Latvia, Valdis Siksnis, Normunds and Janis Bergs (SAF Tehnika, Mobilly), Sven Dinsdorf (Elko), Juris Grisins (Capitalia) , Denis Kairan (Colliers), Kaspars Feldmanis surgeon, vowed to support Philips Kļaviņš and Raimonds Slaidiņš and many others.

LA.lv


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