Wednesday , March 22 2023

For Lithuanians – a chance to retire with & # 39; 200 thousand. saving & # 39; euro?


Since the beginning of 2019, the formula for pension adjustment due to enter into force, allowing earners & # 39; average wages accumulated about 200 thousand person in & # 39; full-time employment second pension pillar fund. euro These theoretical calculations under the new model & # 39; accumulation carried out by the Association of Investment Funds and the Pension Lithuania (LIPFA).

The purpose of the expected savings was calculated by molding the situation with & # 39; such that by the age of & # 39; 25 immediately to the maximum of the second stage, saving the young person began pension, along with state incentives, will be invested in accordance with the model of the life cycle fund. LIPFA The calculations are based on the assumption that full-time residents to pay tax & # 39; 1000 euro and the retirement age is when the employee reaches the age of & # 39; 65. During the period & # 39; accumulation, it is estimated that annual wage growth will amount to 3.5 to 5 percent per year.

It is assumed that the accumulated 200 thousand. In the future, a person can & # 39; buying goods and services both now available for 91,000 euros. euro

"The social insurance system of state guarantees old-age pension, but not & # 39; is no secret that in most cases are hardly sufficient for essential needs, so we estimate what savings could & # 39; to be expected from a resident of & # 39; 1000 euro on paper. Currently, inactive workers from 2019 have the opportunity to enter the second stage and start saving when they retire. After leaving S- labor market, this will be a true source of & # 39; additional revenue, "says the president LŽPA Šarūnas Ruzgys.

According to him, 3 percent of a person to defer salary, plus & # 39; 1.5 percent of state incentives in 2070, to accumulate around 201 000. Specific euro savings can & # 39; varies according to the accumulation rate and macroeconomic conditions.

Currently, in the second stage, 1.3 million or even 9 out of 10 employees are officially raise their pension. According Š. Ruzgio, the rapid aging of the population and migration will only strengthen new demographic challenges, it will be increasingly difficult to single state to respond to itself.

"Never m & # 39; is too late to start save. From the tax reform next year, almost all unless they can cover part or all of the contribution to Tier II and will not reduce D- their income ", – says Š. crucifixion

When collecting a pension at Stage II and allocate maximum & # 39; 3 percent of salary, 1.5 per cent contribution from the country average salary is also done by the state. The future pensioner funds are invested, while increasing the proportion of & # 39; conservative investments.

When the person retires from the labor market and become old-age pensioner, the biggest shock is caused by the fact that the monthly income decrease by & # 39; dramatically, to choose the new priorities and learn how to allocate their lower income. According to experts, after 20 years, then, retired people could be forced to live five times less revenue, because the state can & # 39; provide them with only 23%. current salary pension.

In the second quarter & # 39; this year, the average wage in the country was taxation & # 39; € 918.8, and old-age average for the state was & # 39; € 337.

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