More than a third (36 per cent) of Estonians are concerned that their pension savings will not be enough for retirement, with even more uncertainty in other Baltic countries, research from Luminor has revealed.

The research found that, compared to other Baltic countries, Estonians feel the most confident about their future and pension savings, as 65 per cent of Estonians think their financial situation will be very good or rather good when they retire, compared to 57 per cent in Lithuania and 58 per cent in Latvia.

However, there are still a large number who are unsure as to whether their accumulated savings will be enough for a good old age, with recent price increases prompting concern that these accumulated savings will lose its value over time.

Indeed, according to the survey, 36 per cent of Estonians are worried about their future and think that the money reserves saved for retirement are too small.

This uncertainty was even greater in Latvia and Lithuania, as 42 per cent and 44 per cent of residents there were not sure of the adequacy of their savings, respectively.

There was also particular concern around recent price increases, as 39 per cent of Estonians without pension savings said that they did not believe there is any reason to save, as the value of money will fall by the time they reach retirement.

Luminor pension fund manager, Vahur Madisson, suggested that Estonian's insecurities have also been exacerbated by rising taxes, inflation and, in some cases, the abandonment of second pension pillar.

However, Madisson argued that, while the kind of inflation we've seen can make people feel "hopeless", it certainly shouldn't stop workers from building cash reserves.

"One option is to invest in assets that have historically provided protection against inflation over the medium term, such as stocks and real estate. If the shopping basket becomes more expensive in terms of money, stock markets and real estate tend to become more expensive as well," Madisson stated.

"Stock markets because companies are able to charge higher prices for products and services in inflationary conditions and rising construction prices support real estate.

"However, the most important thing is to be consistent in accumulating your savings in order to spread purchases over time and to benefit from long-term market price growth."

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