Pension systems

OECD Reviews of Pension Systems: Latvia

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Published on March 07, 2018

This report assesses the performance of all components of Latvia's pension system. Latvia was the first country to fully implement a non-financial (notional) defined contribution (NDC) scheme in 1996. A funded mandatory earnings-related scheme complemented NDC since 2001. Voluntary private pensions cover only limited number of people. Over the last 20 years, the severe economic crisis, population ageing and strong emigration have revealed both strengths and weaknesses of the Latvian pension system. The review assesses also the minimum and basic pension schemes which provide the first-layer of protection against the old age poverty especially for those with short or patchy careers. Separate analysis focuses on the disability and early retirement schemes, including the schemes for workers in arduous and hazardous occupations. The detailed analysis leads to tailored recommendations on how to improve the performance of each element as well as the pension system as a whole.


Executive summary
Overview of the Latvian pension system
First layer of protection against old-age poverty
The Latvian notional defined contribution scheme
Mandatory and voluntary funded defined contribution schemes
Early retirement and disability schemes
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This report has been produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.

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Presentation of the report: Short version - Long version



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Further reading: 

Other OECD Pension Policy Notes and Reviews 

OECD Pensions at a Glance 2017

OECD Pensions Outlook