Advances in Economics and Business Vol. 4(8), pp. 381 - 387
DOI: 10.13189/aeb.2016.040801
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What Will Happen to Retirement Economy in the Baltic States?

Olga Pavuk ^*
Department of Regional Economy and Economic Policy, Baltic International Academy, Latvia

ABSTRACT

The new term "retirement economy", as no other one, characterises realities not only of the modern labour market, but also of the world economy. The adverse demographic situation in the Baltic States allows speaking about the inability of the present retirement system for future pensioners. Besides low birth rate it is necessary to mention substantial out-migration of able-bodied population to other countries with good working opportunities. The adverse demographic situation and labour migration are the basis of pessimism and non-confidence of the population, especially of the youth, in the state retirement system. People understand that if at the moment of their retirement in the country there is not enough labour force, and the number of young people has been reduced, it will not be possible to resolve the issue of decent pensions. The raising of retirement age will hardly help to make a difference. Aging of the population on the European continent in general and Latvia in particular leads to increase in demographic loading. The share of aged population in the national economy increases quicklier than the inflow of young and middle-aged population, i.e. persons who are at the age of labour activity. The immigration flow accruing from year to year also has a negative impact on a qualitative structure and number of labour forces. One of solutions could be a paradoxical decision to lower retirement age. In order to free up jobs for young people, particularly keenly felt the burden of unemployment and to motivate them to participate in social programs and pension funds.

KEYWORDS
Retirement Economy, Virtualization, Employment, Demography

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Olga Pavuk , "What Will Happen to Retirement Economy in the Baltic States?," Advances in Economics and Business, Vol. 4, No. 8, pp. 381 - 387, 2016. DOI: 10.13189/aeb.2016.040801.

(b). APA Format:
Olga Pavuk (2016). What Will Happen to Retirement Economy in the Baltic States?. Advances in Economics and Business, 4(8), 381 - 387. DOI: 10.13189/aeb.2016.040801.