RIGA, July 16 (Xinhua) -- More than half of Latvians feel financially insecure about retirement, while only 14 percent are confident about their financial future in old age, according to survey released on Thursday by Luminor Bank, one of the major banks in the country.
The survey, conducted in June in partnership with research agency Norstat among 852 respondents aged 18 to 74, found that 52 percent of respondents lack confidence in their retirement finances. Of those, 22 percent of participants feel very insecure about their retirement finances and another 30 percent feel insecure.
In comparison, about one in four respondents said they are only slightly confident, while 14 percent said feeling confident or very confident.
The survey also found a gender gap, with women reporting significantly greater financial insecurity about retirement than men.
Latvia's pension system is based on lifetime social security contributions, meaning lower lifetime earnings generally result in lower retirement benefits.
Atis Krumins, head of pensions and asset management at Luminor Bank, said the state pension currently replaces only about 50 percent of pre-retirement income and that the replacement rate is expected to decline because of demographic pressures.
"That means individuals must take personal responsibility for their financial comfort in old age," he said. ■