Problems and Perspectives in Pension System: Case of Baltic States

Abstract

In all states of European Union reforms in pension system are being made, likewise in Latvia. Demographic and economic problems that are occurred forces pension reforms to be made. New developed pension reform includes different processes, like – formation of financial equilibrium between incomes and costs, limit performance in going early in pension, increasing of age of going in pension, rebalancing between men and women. Simultaneous formation of state and private pension systems could prevent some of the major drawback in system of pension that undermines the pension system of nowadays. Unfortunately the high social security contributions of state sector persons lacks of money, for deposit in private pension funds. Using method of logic synthesis, as the target authors nominated to examine problems of pension systems in the Baltic States, as well as similarities and divergences in problems and perspectives, with the status of private pension funds in accumulating pension system.