Soon a new pension will be legalized in Lithuania: it will start from 28 euros, and this is not the end

So far, only widows or widowers have received a similar benefit, with an average of € 28. The objective of introducing the so-called unipersonal pension, which would be granted to a wider circle of people, not only to widows, was also included in the execution plan of this government program.

Navickienė: the benefit is intended to help the population most at risk of poverty

As portal Delphi Explained the Minister of Social Security and Labor, Monika Navickienė, the granting of this pension must be approved by the Government when adjusting the budget.

“The process of adoption and harmonization of the law in the context of the budget is currently underway. There is a government program and the Prime Minister draws attention to the problem of risk of poverty, which has arisen in the face of a pandemic. We are making efforts to fulfill that promise, we are looking for ways, finances, resources and opportunities to achieve it ”, said the Minister.

The plan, he said, is beneficial to reach single people from 2021. Initially it would reach 28 euros, and next year it is planned to increase this one-person pension.

“A wider circle of single people, not just widows, would receive additional benefits that would reach the size of the widow’s pension.” Well, in 2022, they would grow. (…) Our goal is to get started, implement the initial steps and then, looking at the budget options, increase this amount of profit as much as possible.

We hope to achieve the established objectives, but we want to start and reach those people who are most at risk of poverty: beneficiaries of social assistance pensions and those who are alone but not widowed ”, explained M. Navickienė.

The third priority is the “Empowerment of the most vulnerable groups in society” in the Implementation Plan of the Government Program.

The priority also identifies the pension of singles of retirement age as one of the four indicators expected to be reached in 2024, which would amount to 11%. average old-age pensions. Thus, the government has set a goal that the amount of the aforementioned pension for 2024. would reach more than € 40.

“If the project is approved, I want to emphasize that the discussions are still ongoing, these people would receive additional income already in 2021. According to preliminary data, the entry into force would be from July,” said the Minister of Social Security and Labor.

Another indicator planned as a priority for the Government is until 2024. reduce the at-risk-of-poverty rate from 20.6% to 17%.

According to M. Navickienė, the mentioned pension of single people of retirement age would contribute to the achievement of this indicator.

“Today, statistics show that it is single people who are at the greatest risk of poverty. If we talk about the appropriateness of this measure, it is the calculations that show that the greater material well-being of these people would really have a significant impact on the problem of the risk of poverty ”, explained the Minister.

It is estimated that this measure this year, according to M. Navickienė, would cost an additional preliminary amount of about 15 million. euros.

Spring: the measure would also address discrimination

For his part, Mindaugas Lingė, president of the Seimas Labor and Social Affairs Commission, said that he had not yet evaluated the final project, but said that the benefit was appropriate.

“At the beginning, it would help to solve the problem of discrimination, it arose because they are single people and people who have acquired the status of widows. Regarding aid, the situation of these people varies: some claim a certain amount of benefit, which is now around € 28, while others do not. As a result, their needs are not reduced and their living conditions are not different, “said the commission’s president.

Granting a pension to single people would also address, as Ms. Lingė pointed out, the issue of attitudes towards people.

“His situation is practically identical and the same. The second point is that, considering both categories, there is the problem of poverty for older people who live alone. It is very high since it is estimated that it reaches more than 40% in this group. Still, older people make up about 30 percent. experiencing poverty. There is an even higher risk of poverty for single people, and that convenience through various depreciation mechanisms and through a single person’s pension could help, ”said M. Lingė.

Lazutka: The measure is reasonable, but you also have to think about the fuses.

Delphi In early March, he spoke with the economist, Professor Roma Lazutkas from Vilnius University.

Evaluating the implementation plan of the Government program, he affirmed that the planned introduction of one-person pensions is a good and important measure, although it will not exceed or strongly contribute to the fight against poverty, as pointed out by the Minister of Social Security and Labor M. Navickienė wait.

“This measure is quite precise, but it will not necessarily reduce the risk of poverty rate to 17%. Those pensions for single people are so small that they add up to 11 percent. Of the average pension, it will be about 40-45 euros. With So much added to retirement, these people will not exceed the poverty line. They will remain below the threshold, but the measure is undoubtedly justified, because even though these people will remain in poverty, that poverty will not remain as severe, it will be a little easier for them to fall into poverty. They will take those 40 euros, pay for the heating and will have money from their pension for someone else, “said R. Lazutka.

This new measure, she said, would be particularly relevant for single women of retirement age, as men live shorter lives in the country and women’s pensions are often low due to the low salary they receive.

“Women tend to stay alone, so now they receive a widow’s pension because there are widows, but we know that there are many people who divorce, retire alone, do not become widowed and then do not receive benefits,” he said.

Therefore, according to R. Lazutka, such a benefit would also help divorced single seniors.

“It is much more difficult for a lonely person to live because he has to pay the same for heating, whether he lives in two or alone,” said the economist.

However, he noted that certain oversight mechanisms should also be established for this benefit in order to prevent abuses.

Of course, it would be even better to increase pensions faster for all and then it would be possible not to differentiate, because now the single pension is being criticized so that people who begin to divorce in old age receive that benefit. It is very important to put some fuses, let’s say that in the first 3 years after the divorce you are not going to pay, so that there is no temptation to divorce only because of your retirement age, but here things are fixed ”. assured the professor.

Speaking of this, M. Lingė states that he would be inclined to trust people first and assess the need for such safeguards already in the pension award process.

“If we see that there are several cases of abuse that are clearly visible and demonstrable, I would probably be inclined to address that topic in the course. Assuming in advance that people will start taking fictitious things … I want to trust people, “said the chairman of the Committee on Social Affairs and Labor.

He reiterated that some technical fuses or other similar details may be introduced in the ministry’s final draft.

According to R. Lazutka, it is also worth considering whether receiving the benefit should not depend on the amount of the pension received. However, this would complicate the system and increase the administrative burden.

However, the economist was pleased that the idea of ​​Gintarė Skaistė and Laurynas Kasčiūnas, members of the Seimas who had previously proposed such a measure, had not been forgotten.

“It is commendable that they did not forget the pension of a lonely person, because I remember when Skaistė and Kasčiūnas offered it while they were in the opposition, they gave a press conference. They did not forget that, recorded in the plan of measures. I think this is an example of honorable behavior by politicians, “added R. Lazutka.

According to data from the Ministry of Social Security and Labor, currently the average widow’s pension reaches 28 euros, it is received for about 210 thousand. widowed pensioners.

If approved, effective July 1 of this year. the right to receive the benefit per single person would acquire even more than 60 thousand. people. From 2022 more than 400 thousand will already receive a single person benefit or a widow’s pension. people.