Economic environment impact on pension system: Case of Latvia

Abstract

The goal of the state implemented Pension Reform is to create a financially stable and efficient pension scheme that is based on individual social security contributions which in turn will ensure such amount of pension that depends on the contributions made over the previous period, as well that will facilitate the increase of social security contribution growth. The objective of research is to investigate whether the existing Pension system in Latvia is working effectively under changing economical environment. It also analyzes the impact of recession and the current demographical situation with a flow of emigration. The research aims at offering several options for the improvement of the situation.