NOTIONAL DEFINED CONTRIBUTION PENSION SCHEME EXPERIENCE IN LATVIA: SOME LESSONS
<p>In 1996 Latvia became one of the first countries in the world to adopt the notional defined-contribution (NDC) pension system. The authors have been studying the distribution of old-age pension benefits in Latvia and its dynamics over recent years. They conclude that the Latvian pension for...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Wydawnictwa AGH
2015-07-01
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| Series: | Studia Humanistyczne AGH |
| Subjects: | |
| Online Access: | https://journals.agh.edu.pl/human/article/view/1666 |
| _version_ | 1827833356867338240 |
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| author | Olga Rajevska Feliciana Rajevska |
| author_facet | Olga Rajevska Feliciana Rajevska |
| author_sort | Olga Rajevska |
| collection | DOAJ |
| description | <p>In 1996 Latvia became one of the first countries in the world to adopt the notional defined-contribution (NDC) pension system. The authors have been studying the distribution of old-age pension benefits in Latvia and its dynamics over recent years. They conclude that the Latvian pension formula practically lacks any redistribution mechanism, pension benefits do not have any upper limits, and the minimum level is set as inadequately low. Pure NDC systems are not adequate for countries with a relatively large gap between the rich and the poor (as is the case of Latvia); material stratification is not evened out in old age, and combined with low replacement rates it leads to massive poverty among the elderly. Latvian authorities have recently recognized the need for NDC pension system improvement, and elaboration of the basic pension concept in Latvia should start in 2015. The authors provide a brief comparison with the situation in neighbouring Estonia, where the distribution of pension benefits is much more even.</p> |
| first_indexed | 2024-03-12T05:28:05Z |
| format | Article |
| id | doaj.art-d6dad211640241c1abdadfe3db5fa08a |
| institution | Directory Open Access Journal |
| issn | 2084-3364 |
| language | English |
| last_indexed | 2024-03-12T05:28:05Z |
| publishDate | 2015-07-01 |
| publisher | Wydawnictwa AGH |
| record_format | Article |
| series | Studia Humanistyczne AGH |
| spelling | doaj.art-d6dad211640241c1abdadfe3db5fa08a2023-09-03T07:10:18ZengWydawnictwa AGHStudia Humanistyczne AGH2084-33642015-07-0113418519710.7494/human.2014.13.4.185-1971230NOTIONAL DEFINED CONTRIBUTION PENSION SCHEME EXPERIENCE IN LATVIA: SOME LESSONSOlga Rajevska0Feliciana Rajevska1University of Latvia / Vidzeme University of Applied SciencesUniversity of Latvia / Vidzeme University of Applied Sciences<p>In 1996 Latvia became one of the first countries in the world to adopt the notional defined-contribution (NDC) pension system. The authors have been studying the distribution of old-age pension benefits in Latvia and its dynamics over recent years. They conclude that the Latvian pension formula practically lacks any redistribution mechanism, pension benefits do not have any upper limits, and the minimum level is set as inadequately low. Pure NDC systems are not adequate for countries with a relatively large gap between the rich and the poor (as is the case of Latvia); material stratification is not evened out in old age, and combined with low replacement rates it leads to massive poverty among the elderly. Latvian authorities have recently recognized the need for NDC pension system improvement, and elaboration of the basic pension concept in Latvia should start in 2015. The authors provide a brief comparison with the situation in neighbouring Estonia, where the distribution of pension benefits is much more even.</p>https://journals.agh.edu.pl/human/article/view/1666pension reformnotional defined contribution pension systemsinequality |
| spellingShingle | Olga Rajevska Feliciana Rajevska NOTIONAL DEFINED CONTRIBUTION PENSION SCHEME EXPERIENCE IN LATVIA: SOME LESSONS Studia Humanistyczne AGH pension reform notional defined contribution pension systems inequality |
| title | NOTIONAL DEFINED CONTRIBUTION PENSION SCHEME EXPERIENCE IN LATVIA: SOME LESSONS |
| title_full | NOTIONAL DEFINED CONTRIBUTION PENSION SCHEME EXPERIENCE IN LATVIA: SOME LESSONS |
| title_fullStr | NOTIONAL DEFINED CONTRIBUTION PENSION SCHEME EXPERIENCE IN LATVIA: SOME LESSONS |
| title_full_unstemmed | NOTIONAL DEFINED CONTRIBUTION PENSION SCHEME EXPERIENCE IN LATVIA: SOME LESSONS |
| title_short | NOTIONAL DEFINED CONTRIBUTION PENSION SCHEME EXPERIENCE IN LATVIA: SOME LESSONS |
| title_sort | notional defined contribution pension scheme experience in latvia some lessons |
| topic | pension reform notional defined contribution pension systems inequality |
| url | https://journals.agh.edu.pl/human/article/view/1666 |
| work_keys_str_mv | AT olgarajevska notionaldefinedcontributionpensionschemeexperienceinlatviasomelessons AT felicianarajevska notionaldefinedcontributionpensionschemeexperienceinlatviasomelessons |