Some 908,200 persons were paid at least one type of pension in Lithuania at the end of 2016, which is one in three residents of Lithuania, the country's statistics agency said in its preliminary report.
Amid a rapid decline in Lithuania's worker-to-retiree pension, the central Bank of Lithuania is sounding the alarm and calling for the pension system to be reformed and for future pensions to be linked to personal contributions.
Lithuanian Prime Minister Saulius Skvernelis says that the government does not plan to tax pensions, although Social Security and Labour Minister Linas Kukuraitis has recently publicly mentioned such a possibility.
The Lithuanian government led by Prime Minister Saulius Skvernelis intends to make the first decisions in connection to restructuring of the pension system in the nearest future, while implementation of all reforms may take until the end of 2019, according to the measures of the government plan published on Thursday.
Lithuanian residents who are expected to have the lowest old-age pensions will be advised to make additional contributions to their pension fund or return to the state-run social insurer Sodra, says Finance Minister Vilius Šapoka.