| Abstract [eng] |
In a climate of declining birth rates, increasing age of the life expectancy of the population and huge emigration rates in Baltic countries it becomes important the topic about the financial situation of the elderly people. Although the cost of living in countries is growing, today, the average state retirement pension in the Baltic countries is extremely low: barely more than one-third of the average wage. Because of the bad financial situation and lack of negative prevailing demographic prospects of Baltic countries it will be increasingly difficult to provide retirees with the proper amount of social benefits in the future. It is forecasted, that in the near future of the Baltic countries, fewer and fewer working people will have to support an increasing number of retirement-age population. Due to the escalation of existing and demographic problems in Lithuania, Latvia and Estonia there came II pillar pension funds, whose purpose was to ensure adequate retirement income through private pension accumulating. Despite the fact that there are many affirmative thoughts about the II pillar pension funds performance, there are a lot of uncertainty about these pension funds effectivenes. In order to understand if II pillar pension funds in Baltic countries are working effectively, we decided to do the research on the II pillar pension funds performance evaluation. |
