Going for faster pension growth: who and when will feel it



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“After the gout”

Jonas Burdulis, president of the Lithuanian Retirees Movement, said on news radio that pension growth is too small and too slow.

“But it seems to me that our government is following a path that has long been called: drop by drop. And don’t give too much to retirees,” he said.

The president of the Lithuanian Retirees Movement, J. Burdulis, also spoke about another aspect of the forgotten problem.

“It is not necessary to talk about raising pensions, but about increasing the redistribution review. In the EU, Lithuania redistributes the least part of the public product, around 30 percent, while in Western Europe this figure reaches more than 50 percent, even more. When it is a pity to distribute the global product correctly, what kind of social justice or similar things can be said here, ”said J. Burdulis.

He recalled that the largest promised increase in pensions is scheduled for 2024, when the Seimas elections are scheduled.

“Now it is possible for a drop, 8 euros each. And then it will increase by 20 or 30 euros and we will all say, well, how good we are,” he said.

The president of the Lithuanian Retirees Movement stated in the “Aktualusis Interview” program that not only the size of pensions, but also the pricing policy is a very important aspect.

“It just came to our attention then. Our Government does not speak at all about pricing policy, what they think of themselves. Now preparing to raise gas prices almost doubles electricity prices. And those few euros … Listen , we do not laugh at the light ”, taught J. Burdulis from a strict position on the radio news program.

“The lowest beneficiaries of the increase in the pension will be the ones who feel the most”

The Minister of Social Security and Labor, Monika Navickienė, explained on the radio news program “Topical Interview” from which funds the pensions will be raised.

“We are talking about the indexing part that would be allocated to the planned surplus part of the Sodra budget. Part of which could be transferred to the reserve and the other part aimed at faster indexation of pensions. The principle and the rationale It is this: if we leave the current legislation and the automatic indexing that has been in force until now, Sodra would accumulate a fairly large surplus. Therefore, we suggest that the acceleration of the indexing mechanism should start now, “said the minister.

As long as you correct J. Burdulis’s thoughts, the biggest increase in pensions would not be in 2024, but rather earlier.

“Those who receive the smallest pensions in the first year will be the ones who will feel the increase in pensions the most,” he emphasized.

M. Navickienė stated that the mechanism created in 2018 works well.

“It is depoliticized, automated and tied to the state’s ability to index and accelerate pension growth. However, we believe that it needs to be improved in 2 directions. The first is to increase the book value of pensions in that part of the surplus. This means that those who paid more contributions and accumulated more experience would be more affected.

On the other hand, the general part of the pension, we also believe that a change is needed. Many people receive small pension supplements and that part of the pension is financed from the state budget. We believe that a change is needed here, which will already be financed at the expense of the state budget, ”Minister M. Navickien dijo said on news radio.

He said that the additional pension indexation of the Sodra budget in 2022 would be allocated 70 million euros, and the universal growth of the basic part would be allocated 48 million euros of the budget, an additional 18 million would be allocated to the disabled.

“You can probably always say that it is too slow and too little. But it seems to me that it is particularly important to have the political will and agreement that we need to increase pensions. We need to increase them in a measured way, within resources and budgetary capacities, in a sustainable way. Not for a year, but for a 3-year perspective on how that model might work. And it is very important that this model is a reduction in the poverty rate ”, assured the Minister of Social Security and Labor M. Navickienė.

She stated on the radio news program that Lithuania and the size of the average pension in it do not depart very significantly from the context of the region.

“But I always suggest looking at the possibilities of my country,” said Minister M. Navickienė.



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