The question of the sustainability of Latvia's pension system is once again coming to the forefront. Against the backdrop of declining birth rates and an aging population, experts are increasingly discussing that the country will sooner or later have to make new decisions that will determine how the pension system will operate in the future, writes Dienas Bizness. According to the Central Statistical Bureau, in 2025, Latvia had 437,800 pensioners out of a total population of 1.857 million people. This means that almost every fourth resident of the country is a pensioner. At the same time, according to the State Revenue Service, in December of last year, Latvia had 808,269 registered employees. Among them, about 65,000 to 68,000 pensioners continue to work, as they want to remain active, need additional income, or have not accumulated sufficient work experience. The demographic situation has changed significantly over the past decades. In 1999, Latvia had a population of 2.42 million, with about 521,000 pensioners. Although the number of pensioners has decreased, the country's population has declined even more sharply, leading to an increase in their share of the total population. Demographic changes have been one of the reasons for the gradual increase in the retirement age. Currently, men and women retire at 65, and starting in 2025, the minimum insurance period for receiving an old-age pension will be increased from 15 to 20 years. So far, the question of a new increase in the retirement age is not officially on the table. Moreover, in the lead-up to elections, politicians avoid such initiatives, as they may provoke a negative reaction from voters, especially those nearing retirement age. However, it is likely that it will not be possible to completely avoid this topic. The Ministry of Finance is already forecasting that if the current policy continues, the surplus of social insurance funds will gradually decrease, and by 2030, it may be replaced by a small deficit. This does not mean that a decision to raise the retirement age has already been made or is inevitable. But financial forecasts indicate that the question of the long-term sustainability of the pension system will once again be at the center of the political agenda in the coming years.
