Why the share of small amount pensions is so substantial in Latvia?
More than 70% of all old-age pensions in Latvia are smaller than 300 euro, which is close to the monetary value of the at-risk-of-poverty threshold. There is a number of reasons for it: the lack of non-contributory component and inadequately low minimum pensions, the absence of redistribution mechan...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EDP Sciences
2018-01-01
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| Series: | SHS Web of Conferences |
| Online Access: | https://doi.org/10.1051/shsconf/20184003011 |
| _version_ | 1818447402388946944 |
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| author | Rajevska O. Rajevska F. |
| author_facet | Rajevska O. Rajevska F. |
| author_sort | Rajevska O. |
| collection | DOAJ |
| description | More than 70% of all old-age pensions in Latvia are smaller than 300 euro, which is close to the monetary value of the at-risk-of-poverty threshold. There is a number of reasons for it: the lack of non-contributory component and inadequately low minimum pensions, the absence of redistribution mechanisms in the mandatory notional defined contribution (pillar I) and funded (pillar II) schemes, an unfair conversion of pre-reform employment record into pension formula, and a high tax burden on pensioners. The authors proposed a package of measures to improve the situation: an introduction of basis pensions, linking minimum pensions to the country average wages, increasing income tax exempt for pensions, restoration of the supplements for pre-reform employment and their regular indexation, removal of the threshold in initial notional pension capital calculation or its reduction from 30 to 20 years. |
| first_indexed | 2024-12-14T20:03:03Z |
| format | Article |
| id | doaj.art-9723f129c4404c11980e70295000ae92 |
| institution | Directory Open Access Journal |
| issn | 2261-2424 |
| language | English |
| last_indexed | 2024-12-14T20:03:03Z |
| publishDate | 2018-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | SHS Web of Conferences |
| spelling | doaj.art-9723f129c4404c11980e70295000ae922022-12-21T22:49:07ZengEDP SciencesSHS Web of Conferences2261-24242018-01-01400301110.1051/shsconf/20184003011shsconf_shw2018_03011Why the share of small amount pensions is so substantial in Latvia?Rajevska O.Rajevska F.More than 70% of all old-age pensions in Latvia are smaller than 300 euro, which is close to the monetary value of the at-risk-of-poverty threshold. There is a number of reasons for it: the lack of non-contributory component and inadequately low minimum pensions, the absence of redistribution mechanisms in the mandatory notional defined contribution (pillar I) and funded (pillar II) schemes, an unfair conversion of pre-reform employment record into pension formula, and a high tax burden on pensioners. The authors proposed a package of measures to improve the situation: an introduction of basis pensions, linking minimum pensions to the country average wages, increasing income tax exempt for pensions, restoration of the supplements for pre-reform employment and their regular indexation, removal of the threshold in initial notional pension capital calculation or its reduction from 30 to 20 years.https://doi.org/10.1051/shsconf/20184003011 |
| spellingShingle | Rajevska O. Rajevska F. Why the share of small amount pensions is so substantial in Latvia? SHS Web of Conferences |
| title | Why the share of small amount pensions is so substantial in Latvia? |
| title_full | Why the share of small amount pensions is so substantial in Latvia? |
| title_fullStr | Why the share of small amount pensions is so substantial in Latvia? |
| title_full_unstemmed | Why the share of small amount pensions is so substantial in Latvia? |
| title_short | Why the share of small amount pensions is so substantial in Latvia? |
| title_sort | why the share of small amount pensions is so substantial in latvia |
| url | https://doi.org/10.1051/shsconf/20184003011 |
| work_keys_str_mv | AT rajevskao whytheshareofsmallamountpensionsissosubstantialinlatvia AT rajevskaf whytheshareofsmallamountpensionsissosubstantialinlatvia |