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The Ministry of Social Security and Labor proposes to accelerate the increase in pensions and improve the indexation procedure, according to which the funds accumulated in the Sodra reserve would be used to increase pensions.
“It is important to emphasize that with this decision, we would not accumulate too much, that is, a larger reserve of Sodra, but we would direct the funds to improve the lives of retirees,” says Monika Navickienė, Minister of Social Security and Labor. .
“In our country, retirement poverty is quite high and these measures would reduce the poverty of the elderly by 4.4 percent,” says Deputy Minister Audrius Bitinas.
If this plan is approved, the average old-age pension would reach 461 euros next year, and the elderly with the required seniority would receive 486 euros. In three years, this amount would exceed half a thousand and would already reach 565 euros.
“There would be a greater connection between those who pay taxes and people who have worked and paid taxes all their lives would have higher pensions,” says M. Navickienė.
The older people interviewed would be happy with the increase in pensions, but they are skeptical about the government’s promises: they talk a lot and add only a few euros.
“It just came to our attention then. To live without much worry, you would probably need 500,” says the older one.
“It just came to our attention then. It goes – fifty, depending on the length of service, on the amount of the pension. would helpIt would be good for a retiree, ”says another senior.
The Ministry also proposes to change the procedure for calculating the part of the general pension. This would increase the number of those who receive the lowest pensions; it would increase for those who have not accumulated much seniority, because they cared for relatives, raised children and could not find a job for a long time.
“The beneficiaries of the smallest pensions would have the greatest impact, since they would be close to the size of the minimum consumption needs.
These changes in the increase in pensions would require an additional 137 million euros next year, in addition to the almost 300 million euros already allocated. Currently, there are more than 600 thousand retirees in Lithuania.
The Ministry of Social Security and Labor is expected to present concrete decisions on the increase in pensions in the autumn, with the state budget for next year.
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