[ad_1]
In Latvia, there is a disproportionate commission charge for the management of third-level pensions. This is the conclusion reached by the OECD, which warns against the fact that the disproportionate appetite of private fund managers reduces already low savings for old age.
In the so-called voluntary pension funds, old age money holds a quarter of a million future pensioners in Latvia.
Related articles
All related articles
The third pillar of the pension system was created as an opportunity to voluntarily create additional savings for retirement. It allows one or two additional pension plans, individually or through an employer, to invest in one of the private pension funds through the intermediary of the employer. # 39; employer.
A total of 18 plans are managed by the largest banks in Latvia. The study of the OECD concludes that in Latvia, the commission for this service is the highest not only in Europe but among all the developed countries. Citigroup draws attention to the fact that voluntary retirement savings is claimed twice as much as Indexo seeks to do, its activities having already been completely devastated by the 2nd pillar and the market of the company. 39: accumulative life insurance
Tom Creecbergs
At such high commissions that have made 1.8% over the past five years, we will not be able to accumulate enough in Ukraine to live normally retired. You have to talk about it, you have to raise it in the light of day so that people know how much they are paying and ask questions of managers, so managers are under pressure and starting to compete.
The study also concludes OECD can accumulate in their professional lives, as a result of which today's workers will have to significantly reduce their standard of living retired. Banks recognize that Latvia has high commissions, but the reason is not the entire willingness to lend at the expense of customers, but a big bureaucracy.
Ilya Arefiev
Member of the Board of Directors of Luminor Pensions Latvia
Ilya Arefiev
Ilya Arefiev
Member of the Board of Directors of Luminor Pensions Latvia
Ilya Arefiev
Ilya Arefev
Luminor Pensions Latvia Member of the Board of Management
] Yes, we compare with Estonia and Lithuania, so there is no need for a pension fund as another intermediary. This is the main reason why commissions are higher. If we are talking about quickly reducing these fees to customers, then the third level legal structure should be changed
The Financial and Capital Market Supervisory Commission, which oversees banking activities, does not propose a change in the model of management of the fund. The larger commissions are supposed to fight with greater openness. Such a requirement is also imposed by a new directive of the European Union that must be incorporated into Latvian legislation before the new year.
Ieva Ose
Head of the Pension and Investment Fund Section of the CFMC
Disclosure – this is what we are working on In the meantime, Indexo, which currently operates only with the management of the second pillar funds, believes that the country has much more effective ways to reduce commissions. . Since the level 3 retirement contribution is due to the personal income tax refund, it could be limited depending on the size of the commission.
[ad_2]
Source linkTags Commission disproportionate Latvia level Management OECD pension
Related Articles
