The Saeima rejected a proposal to allow residents to withdraw their second pension level savings early. Although the majority of deputies did not support this initiative, it sparked widespread and controversial discussions in society and among politicians.
There is a misconception in society about who actually owns these funds, an opinion expressed by economist Guntars Vītols in the podcast tv3.lv "Piķis un ģēvelis!".
"Maybe we should just give up on everything! Everyone says — let’s return the money. Fine, let’s return the money, liquidate the system. Whoever contributed that money will get it back. But who contributed it? The state," the economist explained, emphasizing that contributions are made from "mandatory payroll tax," i.e., social insurance contributions.
In his opinion, people mistakenly believe that these savings are entirely their own money, which can be freely withdrawn at any moment.
"Because you paid the mandatory payroll tax — social insurance contributions. They are still taken away. A system can be introduced — part of the interest is credited to this accumulation fund and accumulates. People start to see something accumulating there... If people say it’s bad that this money is sitting there, I say — let’s be honest. The state contributed, the state takes it and returns it to the first level system," he added.
Vītols also sharply criticizes such thinking, calling it darkness. "If there is such darkness — I call it darkness — to think that this is your money and you can withdraw it. I say: let’s return everything as it was, give it back. Wanted? Here you go!" Vītols stated.
Leave a comment