The recovery of Latvian independence in 1991 raised a big question regarding the sustainable pension system in the country. Until 1995 attempts to build the system were not successful but later with the help of the World Bank Latvia has built the pension system, which still functions. It took six years to implement the concept in reality. Today Latvia has a three-level pension system, where the first one is the state compulsory scheme of non-refined pensions, the second one is the state scheme of funded pensions and the third one is the private voluntary pension scheme. The biggest challenge for the system is ageing Latvian society and there is no assurance that this system will be able to survive under these circumstances.
Read more about the Latvian pension system on https://lnkd.in/eSxCpEa
This article has been made in cooperation with China-CEE Institute and is the intellectual property of China-CEE institute.