The Research Institute of the Finnish Economy (ETLA), Helsinki
The study identifies three groups of problems in the Lithuanian pension environment: fiscal problems, poverty of retired people, and problems related to working and saving incentives. The future of the current pension system is suspect, as the population share of the elderly is increasing and fertility is on a declining trend. The study analyses different policy measures, using e.g. a dynamic general equilibrium model. The research group also proposes a pension policy package, consisting of six points, that will alleviate the poverty problems, result in an efficient pension system, and can be implemented so that the welfare losses to some cohorts, which cannot be avoided during the transition, will be small.