What happens to the 2nd pension pillar savings? It should be noted that the 2nd pillar of pensions is a funded pillar, where 6% of the gross (before taxes) salary of an employee is deducted monthly. It is through savings in a personal funded account that the main part of a Latvian’s pension is formed.
Deputies will talk regarding the management of the 2nd pension pillar and its profitability, regarding the inheritance of this accumulative amount next week, when the Saeima commissions on budget and social issues will meet at a joint meeting on this issue. Parliamentarians are preparing to hear experts on the reasons for the decline in profitability in the 2nd pension pillar. However, the main two reasons lie on the surface – inflation and a slowdown in economic growth.
