Lithuanian pension system’s reforms following demographic and social transitions

TitleLithuanian pension system’s reforms following demographic and social transitions
Publication TypeWorking Paper
Year of Publication2013
AuthorsA. Bitinas, A. Fiori Maccioni
Number2013_15
ISBN Number978 88 84 67 835 5
Keywordsdemographic risk, Lithuanian pension system, markov chain, new entrants, pension forecasting, population forecasting, public budget
Abstract

The aim of this article is to define the Lithuanian public pension system reforms, influenced by the last economic crisis and social challenges (ageing processes, raising social expenses). The paper also investigates the influence that current demographic trends will exert on the financial dynamics of the pension system. Results reveal the long-term sustainability of the system, albeit at a cost of initial negative balances to be covered with public budget. Also, the system may expose pensioners to the risks of poverty and social exclusion because of low payments. It is then necessary to intensify the pension system’s reform. Policy solutions should encourage and extend employment (especially for the disadvantaged) and rebuilt trust in both public and private pension systems.

Citation Key6376
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