What was the financial market situation in 2022?
The year 2022 was a year of significant change and, unfortunately, this change was not always positive, with an impact on the economy and financial markets as a whole, as well as on each of us individually.
Jānis Rozenfelds
Chair of the Board of SEB Investment Management
Compared to 2021, which was a very positive year for the financial markets, 2022 showed less positive trends. The beginning of the year interrupted the pandemic time breakout for technology stocks and continued with Russia’s invasion of Ukraine. In parallel, central banks changed their policies significantly, raising base interest rates. As a result, financial markets have been negative for most of the year, except for a few months. However, it should be remembered that financial markets are cyclical – downtrends are followed by uptrends and vice versa. For example, this year has started positively, with January already seeing some growth in the US and European stock market index. These events have, of course, had a short-term impact on pension savings, but it is important to remember that pension plan results need to be assessed in the long term, as saving also takes many years, even decades.
How can regular contributions reduce the investment risk?
By making regular contributions to the savings, the shares of the selected pension plan are bought both when the financial markets are going up and pension plan prices are high, and at the downturn when the prices are low. This evens out the impact of fluctuations in financial markets on your savings in the long term. When the market is at a downturn, it means that pension plan share prices are low, and you can buy more for the same amount of money!
Review the amount of regular contributions once a year, adjusting it to your needs
By contributing to your savings this year, you can increase your potential tax refund next year
SEB supports responsible investments, so you can be sure that the investments are partly made in environmentally friendly and sustainable solutions
Continue to make regular contributions or conclude a standing payment order
Tax refund calculator
For a tailored calculation for you, please enter your details. Please note that the tax information provided is based on the currently valid regulatory enactments in the field of taxation, which may change over time. The tax result may vary in each case.
The calculated values are preliminary and the final amount will be calculated when you submit your tax declaration. In order to receive the refund, you must submit a personal income tax declaration.
It is worth investing in your future
- Although the downturn in financial markets in 2022 has had a negative impact on all 3rd pension pillar plans, SEB 3rd pension pillar plans SEB-Balanced plan and SEB-Active plan show the best returns in their plan categories in the long term – over a 10 year period. The SEB-Climate index plan also performs the best in it's plan category since its launch in 2021.*
- With SEB your pension has the power to create more sustainable future. Learn more here.
*According to data compiled by the Financial Latvia Association as of December 2022, available at: manapensija.lv. Historical investment result do not guarantee equivalent result in the future.
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In accordance with the current regulations, for contributions to your savings (life insurance with savings (with a minimum contract period of 10 years) and/or 3rd pension pillar) of up to 10% of your gross annual income (salary before tax), but not more than EUR 4000, you can receive personal income tax relief in the amount of 20%.
Please note that the provided tax information is based on currently applicable regulatory acts; the tax legislation can change over time. The tax result may differ on a case-by-case basis.
