SEB survey: The pension pillar of a person living in rural Estonia is forest and land

The results of the SEB Retirement Readiness survey revealed that people living in rural areas and small towns are most active when it comes to finding alternatives to increasing income during retirement.

Forty-eight per cent of inhabitants of small towns and 41 per cent of those living in rural areas believe that they are capable of generating sufficient income during retirement by themselves. Big city residents, however, are more sceptical in this regard, with only one-third believing that they will be able to do so. Over the year, the optimism of the Estonian people in that regard has dropped by 17 per cent, hovering at around 40 per cent this year.

Sixty per cent of people living in rural areas hope to increase their pension with alternative income, above all by realising their forest and property investments. Half of the inhabitants of small towns expect pension supplements from other sources, mainly in the form of the sale of real estate.

“While in the capital or in a city (Tartu, Narva, Pärnu), one in five citizens feels financially secure about their retirement age, then in a small town and rural area, the number is every one in three. At the same time, the share of the population that has prepared themselves for pension is still small in Estonia, and we should be more worried about those 70 per cent who most likely will find themselves economically stranded during retirement,” said Indrek Holst, Chairman of the Management Board at SEB Elu- ja Pensionikindlustus.

Only 20 per cent of the residents of cities are saving for their pension. The percentage of those, saving for their pension in small towns and rural area is 34 per cent and 28 per cent, respectively. The highest pension expectations, however, are demonstrated namely by residents of the capital and cities, who are looking to receive roughly the same level of pension as their salary.

The social experiment “Life in the Shoes of a Pensioner” is helping to raise pension awareness

To direct the public’s attention to the problems related to income during retirement, SEB Elu- ja Pensionikindlustus initiated an experiment “Life in the Shoes of a Pensioner”. Within the framework of the experiment, representatives from three generations are trying to live off of an Estonian pension, which is slightly above the average, for one month. You can read about the challenges of early retirement, coping with life, budget plans, but also about the alternatives of additional income from the video blogs of participants in the experiment at: http://www.seb.ee/pensionivalmidus.

For more information:

Julia Piilmann
Communications Manager
Marketing and Communications Division
SEB Pank

Phone +372 665 5340
Address Tornimäe 2, 15010 Tallinn
E-mail julia.piilmann@seb.ee
www.seb.ee

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