© DELFI / Domantas Pipas

Shrinking pensions, emigration and a low birth rate are all related problems, according to Conservative Rimantas Jonas Dagys, a member of a Parliamentary Social Affairs and Labour Committee, who is proposing to link pensions to the average wage.

“I am offering a package of amendments that would deal with the issue of pension depreciation. Currently, pensions are 36% of the average salary, but that rate is decreasing. I think that in the next 20 years it will drop to 24% of the average salary. Even in 2013, we had specified that pensions reach 40% of an average salary,” said Dagys.

The main reason of the changing ratio between wages and pensions is the worsening demographic situation, he said.

“At present, two able-bodied people support one retiree, in 2035 this ratio will be that one worker will support one retiree. Naturally, that will reduce the average pension,” said Dagys.

“Of course, if you fail to cope with demographic aging and weakening of the family, social problems will have a higher tax burden - the costs will inevitably grow in an old society. The only solution is to increase the birth rate and to recover emigrated workforce,” said Dagys.


Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Finance Minister promises to improve proposed budgeting proposal

Lithuanian Finance Minister Vilius Sapoka rejects criticism that the proposed new budgeting...

Big win for Lithuania's conservatives in latest opinion poll

The ruling Lithuanian Farmers and Greens Union (LFGU) in April lost its top position in the...

Foreign minister expects Ukraine to stay on course after election

Lithuanian Foreign Minister Linas Linkevicius expects that Ukraine will not change its course after...

Court: intelligence info about Lithuanian ex-minister as untrue

A Vilnius court recognized on Friday that the State Security Department 's (VSD) allegations about...

Russian suspect in visa bribery case released on bail

Rinat Nasirov , a Russian citizen suspected of giving a bribe to have a Schengen visa issued by...