An overwhelming majority of Latvians are worried about their life in retirement, according to a Norstat poll for insurance company ERGO, LSM reports. The survey showed that 68% of Latvian residents were anxious about retirement, including 74% of women and 62% of men. The main causes for concern were lack of money (67%), health issues…
Estonia’s opposition Estonian Centre Party (Keskerakond) and Fatherland (Isamaa) have signed a coalition agreement to govern Estonia’s capital, Tallinn, for the next four years, ERR reports. Under the agreement, the posts of mayor and city council chairman will alternate between the two parties, and the parties will have three deputy mayors each. Keskerakond’s Mihhail Kõlvart…
Latvia’s general age of retirement was raised to 65 years as of 1 January 2025, BNS reports. At the same time, the minimum time of employment to be eligible for old-age pension rose to 20 years. In 2024, the retirement age was 64 years and 9 months, while the working requirement was no less than…
Lithuanian Prime Minister Ingrida Simonyte has expressed scepticism about an idea to establish a state-run second-pillar pension fund, Baltic News Network reports. She noted that there was plenty of competition in the pension fund market, and that the activities of pension funds were well regulated. The problem was that there was not much choice on…
The Latvian government is discussing possible changes to second-tier pension funds, LETA reports. The Latvian parliament, the Saeima, will consider a public initiative opposing the government’s plan to reduce automatic second-tier pension contributions, LSM reports. The petition collected the necessary signatures in record short time. The government has proposed transferring 1% of second-pillar pension funds…
The Lithuanian government plans to allocate 3% of GDP to defence in the 2025 draft budget, Finance Minister Gintare Skaiste told Ziniu Radijas, BNS reports. However, if the economic indicators allowed, the government could borrow more for specific defence needs, she added. The minister noted that the projected 3% growth of GDP in 2025 would…
Estonia’s three-party coalition government has reached agreement on tax changes, Prime Minister Kristen Michal announced, ERR reports. He said that the government would raise the corporate profit tax, personal income tax, and VAT to finance increased spending on defence. The government will raise the VAT rate by 2 percentage points as of 1 July 2025…
The Estonian government plans to raise the country’s retirement age by one month as of 2027, ERR reports, citing daily Õhtuleht. Under the change, the new retirement age will be 65 years and one month. The retirement age is linked to the life expectancy of 65-year-olds. However, the retirement age cannot be raised by more…
The Estonian government will impose a lower ceiling on parental benefits and a cap on sickness benefits as of 2026, ERR reports. The government will reduce the maximum rate for parental benefits from the current three times the average wage to twice the average wage. The cut will affect around 3,500 people annually, or about…