Latvia considers phased introduction of basic pension from 2027

The Latvian government has taken note of a proposal by the Ministry of Welfare to gradually introduce a basic pension starting in 2027. The plan aims to increase payments based on insurance seniority, initially targeting retirees aged 85 and older, who currently receive the lowest average pensions in the country.

The proposal outlines a phased expansion every three years: by 2030, it would include those aged 80; by 2033, those aged 75; by 2036, those aged 70; and by 2039, all retirees aged 65 and older. To implement this, the government would increase the value of seniority payments for years worked up to the end of 1995 and introduce a new payment for seniority from 1996 onwards.

Financial implications are significant. The initial implementation in 2027 is estimated to require 13.4 million euros from the state budget. As the recipient pool expands, annual costs are projected to rise to 34.8 million euros in 2030, 85.9 million euros in 2033, 216.2 million euros in 2036, and 400.1 million euros by 2039. While the Ministry of Welfare advocates for the reform to support elderly citizens, the Ministry of Finance has expressed opposition to its progression until sustainable solutions for funding these additional expenditures are identified.