Latvian pension funds see high returns amid market growth

Latvian pension funds have seen significant growth due to strong stock market performance. Over the last 12 months, top-performing second-level pension plans achieved returns exceeding 20%. Specifically, CBL Asset Management C’s Equity Index Plan 15-50 provided a 23.35% return, outperforming both the S&P 500 (18.14%) and the STOXX 600 (17%). Swedbank also saw high returns, with its Life Cycle Plan 1990+ yielding approximately 23% and its 1980+ plan yielding 22.6%.

Regarding the management of second-level pension savings, more than half of participants have not designated how their accumulated capital should be handled in the event of their death before retirement. Under Latvian law, individuals can choose to have their savings credited to the state pension special budget, added to another person's funded pension capital, or passed on through inheritance according to the Civil Law. If no choice is made, the funds are automatically transferred to the state pension special budget to help finance overall pension payouts.