Was the participation in second pillar successful in Lithuania?

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ENThe evaluation of participation in Lithuanian private second pillar is analysed in the paper. The analysis is based on qualitative, quantitative and statistical analysis of pension accumulation results during the 9 years period, starting from 2004. The average monthly wage receiver’s scenario is analyzed by calculating the accumulated amount in fully funded private second pillar pension funds and comparing it with the reduced values of first pillar pension, based on pay as-you-go principle. The results of participation in second pillar are compared with the values of old age pension of person who had not joined the fully funded system. The results disclose that fully funded private second pillar pension funds investment management in general shall be assessed as positive and effective. However, due to the longer life expectancy the capital accumulated by women in fully funded second pension pillar does not exceed the present value of loss in first pension pillar, based on pay-as-you-go principle. The comparison of basic annuities exposes more optimistic result for both genders of participants of fully funded private second pillar pension funds. Keywords: old-age pay-as-you-go pension, private fully funded second pillar pension funds, pension reform. [From the publication]