Analytics, Financial Services, Latvia, Pensioners

International Internet Magazine. Baltic States news & analytics Thursday, 13.12.2018, 10:55

ECD: Latvia has to substantially increase minimum pension level

BC, Riga , 07.03.2018.Print version
Latvia has to significantly increase the minimum pension and improve pension indexation mechanisms in order to reduce poverty among elderly residents as well as pension inequality, according to the Organization for Economic Cooperation and Development (OECD) assessment of Latvia's pension system, reports LETA.

The OECD points out that Latvia can increase the basic pension level from 8% of the average wage in the country to the OECD average of approximately 20%.

The organization recommends the Latvian government to decrease the minimum 15-year period when residents have to make contributions so they could receive pensions in the future, and ensure that surviving spouses can receive part of their deceased partner's pension.

The OECD points out that Latvia has to gradually increase contributions payable by microenterprise employees, and achieve that self-employed persons make the same pension contributions as persons employed by an employer.

The OECD has concluded that senior residents in Latvia are exposed to the risk of poverty, especially residents older than 75.

Welfare Minister Janis Reirs (Unity) points out that the OECD's assessment of Latvia's pension system will be very important for further development and improvements to the system. The OECD's recommendations will be analyzed and the best solutions will be looked for.

The OECD was studying Latvia's pension system from last April through this past January.

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