Young people in Estonia have shown a growing interest in pensions and long-term savings in recent years, according to Swedbank.

Its research found that 41 per cent of Estonians aged between 18 and 30 were interested in the sector.

Those aged between 19 and 25 showed the most interest in pensions and long-term savings (46 per cent), while 37 per cent of 18 year olds and 33 per cent of 26-30 year olds were interested in the topics.

Swedbank head of youth banking, Triin Jalaka, said the lower interest among the older age cohort could be related to a specific stage in life.

"People at this age have often reached a stage where they are starting a more independent life, thinking about starting a family or buying a home, for example,” he stated.

“It is all the more important to understand financial matters for yourself early on and start investing as young as possible. Like with sports - if it becomes a habit and a natural part of life, it will be much easier to continue it consistently later on.”

The analysis also highlighted an increasing understanding that pension pillars were part of a holistic investment and an important part of saving for later life.

Jalaka argued that younger people no longer saw retirement as a topic that will only have to be addressed in decades to come.

"Pension pillars are increasingly seen as part of long-term investing, where time and consistency play the most important role,” he said.

“The earlier you start, the more time your investments have to grow and compound interest to do its job.

“There is also a growing understanding of the impact of tax breaks offered by the state and the fact that pension assets belong to the person themselves and can also be inherited.”

Swedbank’s study also highlighted that young people want to understand pension issues before making decisions.

They want to better understand how pension funds work, where money is invested and how to choose the right fund.

“This shows a conscious interest and desire to make well-considered decisions,” said Jalaka.

“At the same time, it gives both banks and the state a good opportunity to think about how to bring pension and investment issues closer to people in an even simpler, more practical and understandable way.”

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