Parents in the Baltics start saving for increasingly young children

The pan-Baltic child insurance statistics of SEB revealed that Estonians save the most for their children, followed by Lithuanians and Latvians. At an average, parents take out child insurance when the child is 4 years old and in Estonia and Latvia, mostly mothers save for the future of their children, while in Lithuania this is done mostly by fathers.

Last year, the average amount paid out from SEB child insurance contracts was EUR 3,422 in Estonia, EUR 2,654 in Lithuania and EUR 2,109 in Latvia. Monthly contributions have been experiencing an upward trend over the last five years and today, an average of EUR 40 is saved for children in Estonia, EUR 37 in Latvia and EUR 36 in Lithuania. In all Baltic countries, the endowment contract aimed at securing the future of the children is concluded for ever younger children.

“The trend where the parents start accumulating funds for increasingly younger children is rather prominent on the Baltic insurance market. When ten years ago, the parents waited until children started school, i.e. until the age of 6 or 7, and then started to think about the education, dreams and future financial wellbeing of children, then today saving for the child’s future has advanced to a higher level among daily financial priorities and at an average, parents start saving for 4-year-old kids. If you start saving as early as possible, the endowment period will be longer and it will be easier to achieve the desired result,” explained Indrek Holst, Chairman of the Management Board of SEB Elu- ja Pensionikindlustus.

Pan-Baltic child insurance statistical data also indicates that over the years women have been slightly more active than men in providing for a financial buffer for their children’s future. Last year was an exception in Lithuania, where 57% of child insurance contracts were concluded by fathers. In Estonia, the proportion of fathers was 42% and in Latvia 31% of all concluded child insurance contracts.

“The SEB child insurance statistics confirms the changes occurring in the society. Firstly, as according to Statistics Estonia, the average age of women giving birth has been constantly increasing in Estonia for the past twenty years, also the average age of parents who conclude insurance has increased year over year, reaching close to 40. Secondly, as the role of fathers in raising their kids already from birth is emphasized more in the society, also we are seeing an increased proportion of fathers in creating the feeling of security for the family,” said Holst.

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