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Monday 16.07.2018 | Name days: Hermīne, Estere
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Bank of Latvia: pensioners' purchasing power has improved a lot

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Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RUA few years ago also pensioners were on the list of a relatively poor population, but now the situation has changed significantly. Pensions were raised in the very beginning of the crisis, so pensioners’ purchasing power, compared to other households, deteriorated less, says Agnese Bičevska, Bank of Latvia economist.

Improvement of pensioners’ purchasing power, compared with other households, is like a cure for chronic diseases. Prior to that, the particular group of the society was subject to unacceptable poverty risks, the economist says.

“Now it is time to focus on the family policy, otherwise in a couple of decades we will all be facing poverty,” Bicevska adds.

According to her, estimates show that income levels could grow very different once again. Besides, pensioners and other low income peoples’ purchasing power was hit by food and housing maintenance price gains in 2011.

According to her, the social policy issue will not lose its topicality either. Figures are not encouraging:. There are about 760 thousand people making social security contributions, 580 thousand pension (old age, disability, retirement) recipients, 30 thousand recipients of the unemployment benefit, as well as people who are paid sickness, maternity and parental benefits.

“We shall not forget that Latvia is planning to gradually raise the retirement age to 65 years,” says Bicevska.

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