Shrinking pensions, emigration and low birth rate ‘are connected’

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.

Lrytas.lt

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