Latvia

OECD Reviews of Pension Systems: Latvia

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Published on March 07, 2018

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This report assesses the performance of all components of Latvia's pension system. Latvia was the first country to fully implement a non-financial (notional) defined contribution (NDC) scheme in 1996. A funded mandatory earnings-related scheme complemented NDC since 2001. Voluntary private pensions cover only limited number of people. Over the last 20 years, the severe economic crisis, population ageing and strong emigration have revealed both strengths and weaknesses of the Latvian pension system. The review assesses also the minimum and basic pension schemes which provide the first-layer of protection against the old age poverty especially for those with short or patchy careers. Separate analysis focuses on the disability and early retirement schemes, including the schemes for workers in arduous and hazardous occupations. The detailed analysis leads to tailored recommendations on how to improve the performance of each element as well as the pension system as a whole.

TABLE OF CONTENTS

Foreword
Executive summary
Introduction
Overview of the Latvian pension system
First layer of protection against old-age poverty
The Latvian notional defined contribution scheme
Mandatory and voluntary funded defined contribution schemes
Early retirement and disability schemes
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Press release: Latvia should raise basic pension to reduce pensioner poverty

 

Presentation of the report: Short version - Long version

 

Tweets:

New report out today says Latvia should raise basic pension to reduce pensioner poverty

Working-age population in Latvia is projected to shrink by around 20% in the next 20 years. How will the pension system adjust?

Latvia was the first country to fully introduce a notional defined contributions (NDC) pension scheme. The new OECD pension review looks into details

 

Further reading: 

Other OECD Pension Policy Notes and Reviews 

OECD Pensions at a Glance 2017