First and second pillar pensions: costs and benefits for contributors in the Baltics
ENEarly in the twenty-first century, the Baltic states reformed their retirement pension systems by introducing funded pensions (second and third pillars) alongside the existing pay-as-you-go (PAYG) system. These reforms aimed to diversify and potentially increase retirees‘ income and reduce the fiscal strain on public finances. This study evaluates the impact of the second pension pillar on individual incomes at retirement in the Baltic states, comparing benefits (additional retirement income) and costs (reductions in PAYG pensions and deferred consumption). The analysis considers low, medium and high-risk investment scenarios, finding positive outcomes for most participants in Lithuania and Estonia, but unprofitable ones in Latvia. Keywords: retirement pension systems; funded pension scheme; costs and benefits; state participation; Baltic states.
- Evaluation of second pillar pension funds' supply and investment strategies in Baltics.. Journal of business economics and management 2017, 18, 6, 1174-1192.
- Funded pillars in the pension systems of Estonia, Latvia and Lithuania.. Economics and business 2013, 23, 83-89.
- Pension systems as risk management: a case of the Baltic states. Challenges to the welfare state: family and pension policies in the Baltic and Nordic countries. Cheltenham, UK ; Northampton, MA, USA : Edward Elgar Publishing, 2021. P. 203-224.
- Second pension pillar participants’ behaviour: the Lithuanian case.. Entrepreneurshiand sustainability issues 2018, 6 (2), 620-635.
- Sustainability literacy and financial literacy of young people in the Baltic States. Sustainability (Basel) 2022, 14, 14013.
- The Effect of second pillar pension to old age pension: Lithuanian case.. International journal of economic sciences 2016, 5, 4, 20-31.
