Sustainability of pension system in Latvia
30.3.2017
Question for written answer E-002326-17
to the Commission
Rule 130
Andrejs Mamikins (S&D)
In its assessment of progress on structural reforms, prevention and correction of macroeconomic imbalances (2017 European Semester), the Commission noted that the low future pension adequacy in Latvia is a cause for concern. Public pension expenditure as a percentage of GDP is the lowest in the EU (Ageing Report 2015).
Latvia’s projected future public pension expenditure is low, mainly owing to its high reliance on funded pensions, and the low projected future pension adequacy (European Commission; the Social Protection Committee, 2015). This implies that a high proportion of pensioners will be receiving very low pensions, which may be politically and socially unsustainable.
What recommendations would the Commission give the Latvian Government in this regard?