Development of the pension system in Latvia

Economic Annals-XXI: Volume 127, Issue 3-4(1), Pages: 38-41

Citation information:
Gzhibovska, N. (2013). Development of the pension system in Latvia. Economic Annals-XXI, 3-4(1), 38-41. https://ea21journal.world/index.php/ea-v127-11/

Natalya Gzhibovska
Doctor in Economics,
Associate Professor,
Baltic International Academy, Riga, Latvia
mihaljova@mail.ru

Development of the pension system in Latvia

Abstract. The article describes the essence of the pension system in Latvia, as well as represents each of the system’s current three levels. Particular attention is given to the third level of the pension system, within the context of which every citizen of Latvia may allocate a part of their income to private pension funds. Separately the possibility of retirement savings through pension funds is singled out, not only among individuals but also among employers, which gives them right to use certain tax benefits. Today many companies in Latvia create private pension funds for their employees by implementing contributions to private pension funds not only for the sake of reducing the tax burden, but such action may be considered as an additional implement for staff incentive and more efficient human resources management.

Keywords: Pension; Pension System; Accumulated Capital; Social Insurance; Private Pension Fund

JEL Classification: H41; H55; J26

References

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2. Law of the Republic of Latvia (2013). «On State Pensions» dated 02.11.1995 with amendments as of 14.06.2012.
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Received 20.03.2013