Analysis

More than half of Latvian pensioners rely on the support of their children

According to a recent survey run by Invalda INVL Asset Management (INVL) and SKDS, an independent research company, over half (56 per cent) of Latvian’s provide support to their retired parents, of which 30 per cent say that they provide financial support.

“Considering that the average pension in Latvia is 320 euros, it is clear that children are forced to support their retired parents to provide them with a decent life after retirement,” said Andrejs Martinovs CEO of INVL. “At the same time, one-third of residents of working age say that they have yet to put any thought into their own retirement, claiming that they intend to rely on their state pension or their children.”

Mr Martinovs adds that “the results of the study show that eight per cent of respondents hope their children will be the main source of financial support when they retire, whereas 43 per cent expect to rely on regular financial support to improve their lives after retiring. However, 37 per cent of respondents do not expect their children to support them financially after retirement.”

Journalist and father of four Ansis Bogustovs believes that relying on children is not the way to go. “Although the thought of living in the home of one of your children sounds alluring, I think that would be difficult for them and us,” he said. “Instead you should spend your retirement doing what you like, not be dependent on your relatives. This is only possible if a person ensures their pension early in life.”