From July 1, 2024, the State Social Insurance Agency (SASS, VSAA) will transfer personal data about participants of the 2nd pillar pension to pension asset managers and banks. Until now, information about which manager’s services residents use was available only to the state and each client individually. What do the new rules mean for residents and banks and what are the risks of sharing such information? These changes are being introduced so that pension managers can assess whether a member has actually chosen a plan that is appropriate for their age. If this is not the case, the manager will recommend a more suitable plan that will allow the participant to save more funds for retirement. For example, if a young person chooses a conservative plan that is inappropriate for his age, then every year he loses the opportunity to earn on average 4-5% more. In turn, with an aggressive market rise, the difference in profitability and lost profits can reach 15-20% per year. However, the new rules also have their own risks that you should be aware of.
