Looking for an adequate and sustainable old-age pension system: comparing Sweden and Lithuania

LTReikšminiai žodžiai: Švedija (Sweden); Lyčių nelygybė; Vyresnio amžiaus žmonės; Pensijos; Gender inequality; Elderly people; Pensions.

ENThe aim of this chapter is to compare Lithuanian and Swedish pension systems from the perspective of their design and performance, and to evaluate the possibility of implementing the best Swedish solutions in Lithuania. An analysis shows that the individual earnings-related component in Swedish pensions is much more significant than in the Lithuanian analogue. This is due to the relatively low funding of the Lithuanian pensions resulting in the need to more evenly distribute the available budget to guarantee subsistence for the recipients with low insurance records. An analysis of statistical data shows that the Swedish system provides better income smoothing and income protection during the life cycle in terms of replacement rate of old age pensions and at risk of poverty indicators for pensioners. However, Lithuanian replacement rates are more equal among genders, though they are below Swedish ones. Despite more equal replacement rates Lithuanian women may have a lower income at retirement due to lower wages and shorter insurance records, consequently being at higher risk of poverty. [Publisher annotation]