It’s necessary to focus on increasing healthy life expectancy in Lithuania, instead of weighing up the idea of increasing the retirement age, a presidential adviser has said.
“The existing average in Lithuania is now 57.5 years,” Irena Segaloviciene said on January 10, adding that Lithuania expected to reach a life expectancy of 65 years only in 2030.
“It’s inadequate to consider a 7-year increase in the retirement age at this stage. The pension system cannot be constructed without taking into account the health of older people,” Segaloviciene added.
Previously, discussion surfaced on whether raising the retirement age to 72 would help offset Lithuania’s ageing population issues. The Ministry of Social Security and Labour says it’s currently not considering raising the retirement age.
According to Segaloviciene, the president proposed a higher level of pension indexation back in 2019 for pensions to amount to around 50% of the average post-tax wage. The rate stood at around 43% in 2019.
“We will already have around 48% and more this year. We should reach this minimum standard of 50% in 2024 and set another strategic goal of getting even closer to the European Union average of more than 60%,” Segaloviciene said.
In Lithuania, the retirement age for both men and women is being gradually increased and will reach 65 in 2026.
As Lithuania’s demographic situation continues to worsen, the European Commission estimates that the number of working-age people capable of supporting pensioners will go down in the future. Brussels says that increasing the retirement age could be one of the solutions. (LRT/Business World Magazine)