The head of state expressed this position after a meeting with the Minister of Social Security and Labor Linas Kukuraitis and representatives of senior organizations.
“The president urges and calls on the government to take appropriate decisions to increase pensions both faster in January 2021 and beyond than before until we reach the minimum standard,” the adviser told reporters on Friday.
According to the adviser, the president is in favor of indexing pensions next year, although there are risks.
The President’s position is unequivocal: we must ensure that pensions continue to be indexed next year.
“This is a very important issue, but it comes with risks, because, as you have seen, the forecasts of the Ministry of Finance show that both the gross domestic product and the wage bill are in the red, which means that the indexation of pensions is in principle from the new year should go off, ”said I. Segalovičienė.
“The president’s position is unequivocal – we must ensure that pensions continue to be indexed next year,” the adviser said.
According to her, the minimum standard is for pensions to reach 50 percent. average salary (VMU), which in the first quarter of this year was “in the hands” of 879.2 euros.
“A common standard and consensus is needed that pensions in Lithuania must be 50%. Vytautas Magnus University net, ”said I. Segalovičienė.
“Today, pensions make up about 42 percent. VMU, when the European Union average is 61 percent. It’s a minimum program and we have to focus and do it, “she said.
According to the president’s adviser, the poverty rate for retirees is 42 percent, which means that almost 250 thousand. people are currently experiencing poverty.
“The well-being of the elderly must be given the highest priority,” said I. Segalovičienė, the country’s adviser on economic and social policy.
The exact amount is unclear
The Minister of Social Security and Labor Linas Kukuraitis says that he does not want to name a specific amount by how much his pension could increase next year.
“I don’t want to name it yet, we really have at least a few options until those options are discussed in the government, we don’t want to talk about them publicly, because that will put some public pressure on colleagues,” the minister told BNS at the presidency on Friday.
According to him, the coronavir crisis has adjusted the financial situation and this may affect pensions, but it is unclear what.
“That it will have an impact on our public finances is unequivocally linked to our ability to pay pensions. I will be able to say whether and how much it will have an impact after we agree on budgets together with the Minister of Finance – both the state and Sodra, – said L. Kukuraitis.
He argued that pensions should be a priority because retirees are the poorest group in society. According to the Minister, it is not yet possible to talk about the growth of the average old-age pension to 400 euros.
“In this case, I wouldn’t even talk about it, because even up to that limit there are 20 several euros,” L. Kukuraitis said.
According to Sodra, the average old-age pension in the country in May amounted to 376.06 euros. At that time, the average pension with the required length of service was € 398.85.