Among them, the contributions of private pension fund pension plan participants in the nine months of 2024 increased by 19.8% compared to the nine months of 2023 and amounted to 73.047 million euros, while employers’ contributions increased by 10.4% – to 17.545 million euros.
On the other hand, 36.735 million euros were paid out of the capital of pension plans in the nine months of last year, which is 7.7% more than in the nine months of 2023, including 94.9% or 34.846 million euros were paid out in connection with the retirement age of plan participants.
At the end of September 2024, the accumulated capital in the pension plans of private pension funds amounted to 933.578 million euros, which is an increase of 15.1% or 122.778 million euros compared to the end of 2023.
At the end of September, 437,423 members had joined the private pension plans, which is 25,546 or 6.2% more than at the end of 2023.
Among them, the number of active members of pension plans increased by 8%, making 223,604, while the number of passive members, i.e. residents who have not made contributions in the last 12 months, but have not yet reached the retirement age specified in the pension plan, increased by 1.9% – to 126 219.
At the end of September, seven private pension funds were operating in Latvia, including six open and one closed, which offered to invest in 21 pension plans.
A three-level pension system has been established in Latvia. First-level pensions are paid to current pensioners from social payments collected in the budget. The second, or funded pension level, provides that part of the social contributions of employees is invested in the financial sector. On the other hand, private pension funds operate on the third level, where funds can be contributed voluntarily.