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.