text: From this week, applications will open for Citadele Bank subsidiary “CBL Asset Management’s” new level 2 pension plan, “Millennials.” It is meant for those Latvian residents born between 1980 and 1990. This is currently one of the most economically active, and at the same time busiest, generations. Therefore, bearing in mind their lifestyle, the new pension plan has been created as a life cycle plan, changing its own investment strategy based on the clients’ changes in age.
  Citadele’s new “CBL Millennials Life Cycle Plan” differs from other level 2 pension plans in that this plan’s investment strategy adapts to the clients’ age over time; management of this plan can also be provided at a lower cost.
  Almost all current pension plans in Latvia are fixed investment strategies. This means that the saver, when getting older, has to decide for themselves when to change their higher-risk investment plan to a more conservative one. It is recommended that, upon reaching 45 years of age, people switch to a plan where the maximum amount invested in business shares is 50%. Meanwhile, at age 50, it is recommended to move to a balanced investment policy plan where investment in capital securities is up to 25%, and from 55 years - to a conservative plan which does not invest in capital securities. This means that the saver has to be involved in the nuances of investment management and has to remain aware of his level 2 pension plan. Managers of the “CBL Millennials Life Cycle Plan” will do this on behalf of the client and, over time, will adapt the plan’s investment strategy to the client’s most suitable risk profile.
  “CBL Asset Management” Chairman of the Board Kārlis Purgailis: ”We see a section of society that is so busy with everyday responsibilities and the ever-growing amount of information available that they don’t keep up with their long-term pension savings. That’s why we created a pension plan which solves this problem. From now on, clients do not have to worry about when they should switch plans away from one which invests more in shares to one which is oriented more towards investing in bonds. Instead of the client, this transition will be managed by professionals who regularly analyse the financial and capital market and macroeconomic trends, investing pension savings in both larger international and local Latvian businesses, as well as in various state bonds, so that the client’s pension fund continues to earn”.
  “Millennials are a generation which demands that services are adapted to them, and we are proud that we could meet this demand. I am grateful to all of my colleagues who participated in developing this pension plan - it is an offer worthy of a regional champion,” says K. Purgailis.
  The “CBL Millennials Life Cycle Plan” investment process will be administratively simpler, and the commission fee for this plan will only be 0.5% of the fund’s value per year, which is very attractive and competitive compared with others in the market.
  The new level 2 pension plan can be applied for through Latvija.lv, using the Citadele online bank or website pensija.lv, as well as at State Social Insurance Agency customer service centres.
  A level 2 pension is state-funded for each Latvian resident - the state pays 6% of a resident’s gross wage (pre-taxes) into a level 2 pension fund every month. The pension fund is overseen by a pension manager chosen by the resident, investing the pension capital in financial markets to increase it. The level 2 pension provides additional savings to supplement the state level 1 old-age pension.
  About “CBL Asset Management”
  Citadele Bank subsidiary IPAS “CBL Asset Management” is one of the leading and most experienced financial asset management societies in the Baltics. It has been working in investment portfolio management since 2002. Meanwhile, in 2003, it was one of the first in Latvia to begin managing level 2 pension savings. “CBL Asset Management” is the largest management team in Latvia, regularly analysing the financial and capital market and macroeconomic trends, investing pension funds in both larger international and local Latvian businesses, as well as in various state bonds.