40% of our pensioners receive a pension below 500 euros.
As of the end of last year, the average old-age pension received by 438,060 pensioners in Latvia was just under 673 euros. However, these average figures often do not reflect the real situation — a significant portion of pensioners receive substantially less.
"The distribution of pensioners by the size of pensions paints an even more dramatic picture: while some receive quite high payments, a significant number of pensioners receive below the average level — 27 percent are in the range of 300 to 500 euros, and 13 percent receive no more than 300 euros. This means that for some people, the level of pension is so low that it significantly affects their everyday financial security," the bank's statement said.
According to available data from the summer of last year, the highest average pension was recorded in the Marupe region at 781 euros, while the lowest was in the Rezekne region, where it reached only 515 euros.
In the context of regional differences, the situation is particularly acute in Latgale and Vidzeme. Data from a Luminor survey also show that these regions have the highest percentage of people who do not make any pension savings: in each of these regions, 13 percent of residents fall into this category.
"These data highlight how important it is for everyone to make every effort to form their future savings. This is not just a recommendation but an important condition for having more opportunities to ensure a stable and comfortable daily life in old age. To achieve this goal, the average income level in retirement should be at least 70 percent of the average salary earned during working life. Unfortunately, demographic trends in Latvia are discouraging — society is aging, and birth rates are declining. This further emphasizes the need to care for financial security," the study emphasizes.
