"Funeral Bell" for the First Level of the Pension System - Poikans 0 8

The first level of pensions is based on the principle of generational solidarity — that is, the contributions of working taxpayers are used to pay pensions to current retirees. Knowing that the country is struggling to emerge from a demographic pit, the question arises: will there be enough workers to ensure contributions to the first level and for future retirees to receive pensions?

"This is what the 'funeral bell' for the first level of the pension system looks like. The sound will only grow louder each year. Unpopular decisions will be needed — there are various options and combinations, but all of them will be painful," writes Ilmars Poikans, a researcher at the University of Latvia, on the social network X, commenting on a table by finance and tax expert Janis Hermanis from the Confederation of Employers of Latvia (LDDK), which shows the current number of employed individuals.

I. Poikans also adds: "The first level of pensions is the same old model of generational solidarity that was used back in the USSR. It only works with a growing or at least not declining population."

Comments:

Ilze: We need to prepare for the fact that we will have to work until the end of our lives, and there will be no more 'pension freebies'...

Zellis: Ladies... Do you hear? Only your children and husbands will take care of you if you are good mothers, homemakers, and wives. Your current work is your poverty in old age. Nothing is guaranteed materially. Your savings can become worthless in a day (deflation, war, civil wars).

Commie: The first level of pensions needs to be reduced to the level of 'social assistance' and the second and third levels need to be reformed so that people can actively manage their funds independently.