According to LLRI president Elena Leontjeva, otherwise, as the Lithuanian society is among the fastest aging, in the long run there will be a lack of sustainable state income to cover pensions.
“Only a responsible human contribution to pension accumulation can be a sufficient guarantee of a dignified old age. It is important to maintain and strengthen the motivation to take subsidiary responsibility for your pension. Any changes to the pension system must be focused on this, whether we are talking about the possibility for residents to withdraw their accumulated pension in exceptional circumstances, or to review the conditions for automatic inclusion in the II pension tier, or to apply the personal income tax regime for contributions to private pension funds “, explains E. Leontyeva.
According to LLRI, the pension replacement coefficient, which measures the restored part of the former income of the resident in old age, is currently 35 percent. and is close to the at-risk-of-poverty level.
However, according to the institute, the Organization for Economic Cooperation and Development (OECD) predicts that in 2022 the pension of people who started working in the future will reach only 28.9 percent. former income.
The president of LLRI emphasizes that proposals to extend the retirement age and the required length of service are not a long-term answer.
According to the institute, such decisions could ease spending pressure for several years before the new retirement age is reached again.
According to E. Leontjeva, state institutions, private organizations and individuals are united by a common goal – a sustainable and strong state.
In order for it to be such, it is necessary to reduce the burden of social security on it, in order to achieve a sustainable pension system.
“The more people take responsibility for saving and financially providing for their future pension, the less the burden on the state will be and the more it will be able to take care of those residents who need it the most,” emphasizes the head of LLRI.
As the elections are approaching, according to the president of LLRI, it is appropriate for the country’s political parties to depoliticize the issue of pensions in such a way that the stability of the pension system is ensured after the end of the regular political cycle.
“Until this is done, frequent changes in the pension system do not allow residents to accumulate enough funds, destroy the stability of the system and satisfaction with it, and undermine the results of efforts to increase the financial literacy of Lithuanian residents,” said E. Leontjeva.
in 2023 According to the data of the Ministry of Social Security and Labor in August, there are currently about 616 thousand people in Lithuania. old-age pension recipients and about 7.5 thousand early retirement pensioners.
In 2024, the average old-age pension amounts to 605 euros, and for those who have the required length of service, 644 euros.
2024-09-05 14:02:33