The 2023 edition of Pensions at a Glance highlights the pension reforms undertaken by OECD countries over the last two years.
In the latest edition, Lithuania was ranked the last among OECD countries by the size of the future pensions to be paid to the people who entered the labour market in 2022. According to the OECD, the pension of current 20-year-olds in Lithuania will be even less than 30% of their salary.
SocDem MP Algirdas Sysas says this should be a signal for the Government to address Lithuania’s demographic and wage problems.
“Today, the average pension accounts for 43% of the average salary. What kind of retirement life awaits today’s young people? We are in last place among all OECD countries in terms of the ratio of pension to salary. We are tragically lagging behind the Poles, Latvians and Estonians. Latvians will receive 52.8% of their former salary in retirement, while the Portuguese will receive 98.8%,” the MP said.
“The Government, which is supported by taxpayers, should spare no effort to find solutions. A single ministry will not solve anything here: ideas are needed on what to do about the tragic demographic situation, how to tackle the labour shortage and how to raise wages,” Sysas stated.
Meanwhile, Social Democratic party leader MEP Vilija Blinkevičiūtė warns that the tax reform failed by the current ruling majority brings bad news for future pensioners.
“Lithuania spends about 6% of its gross domestic product on pensions. In the European Union, the average figure is 12%. (&) International organisations are urging Lithuania to get its tax system in order. A “silver wave” will hit tomorrow and even more funds will be needed for social and health care, and Lithuania is already allocating too little,” she said.