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Lithuanian pension system's reforms following demographic and social transitions

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  • A. Fiori Maccioni
  • A. Bitinas

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.

Suggested Citation

  • A. Fiori Maccioni & A. Bitinas, 2013. "Lithuanian pension system's reforms following demographic and social transitions," Working Paper CRENoS 201315, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:201315
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    References listed on IDEAS

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    Cited by:

    1. T. Gudaitis & A. Fiori Maccioni, 2014. "Optimal Individual Choice of Contribution to Second Pillar Pension System in Lithuania," Working Paper CRENoS 201402, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Audrius Kabašinskas & Francesca Maggioni & Kristina Šutienė & Eimutis Valakevičius, 2019. "A multistage risk-averse stochastic programming model for personal savings accrual: the evidence from Lithuania," Annals of Operations Research, Springer, vol. 279(1), pages 43-70, August.

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