Economist Edgars Volskis asserts that the ideal retirement age for Latvia should be set at 65 years.
This perspective comes at a time when the Danish parliament has recently passed legislation to gradually increase the retirement age to 70. Under this new law, Danes will be able to retire at 68 by 2030, at 69 by 2035, and finally at 70 by 2040. Currently, Denmark’s retirement age stands at 67.
Proponents of the Danish bill argue that this adjustment is essential in light of demographic shifts, including a consistent rise in life expectancy. They warn that without such changes, the pension system may struggle to meet future financial demands.
In contrast, Volskis believes Latvia should not emulate Denmark’s approach to retirement age. “When we compare Latvia to Denmark, the differences are stark. Denmark boasts a higher quality healthcare system and longer life expectancy. There are also more job opportunities for those aged 60 and over, who find employment across various sectors such as cafes, restaurants, and retail. In Latvia, however, these positions are predominantly filled by younger workers,” he explained.
He further criticized Latvia’s inadequate retraining programs for workers approaching retirement. “In our country, individuals tend to remain in their roles until they retire, but many professions now require updated skills and knowledge,” he noted.
Additionally, Volskis highlighted the inequities within Latvia’s pension system, where pensions based on length of service are allocated through specific agencies rather than by profession, which he views as fundamentally unjust.
Amid these discussions, Volskis raised concerns about the government’s financial decisions, particularly regarding the substantial funds allocated to support Ukraine amidst its ongoing conflict. He pointed out that the resources being spent on international aid could have been redirected to bolster Latvia’s own pension system and improve the quality of life for its elderly citizens. “Investing in our pensioners should be a priority. Instead of focusing solely on external commitments, we must also ensure that our own citizens receive the support they deserve,” he argued.
Moreover, Volskis stressed the urgent need for addressing labor migration in Latvia, as the country faces a significant shortage of legal workers. “We require around 100,000 additional workers, many of whom will need to be recruited from third countries. The service sector is already adapting to this reality, with a majority of food delivery drivers and couriers being foreigners. However, we must question whether these individuals have proper employment contracts and contribute to pensions. This issue needs urgent attention from our politicians, who must make responsible choices for the future of our workforce and retirees,” Volskis concluded.
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