The results of the Survey “Pensions and participation in labour market” have been presented
On 25 April, the results of the Survey “Pensions and participation in labour market” were presented at the State Data Agency (Statistics Lithuania). The indicators were presented by the Head of the Living Standard and Employment Statistics Division Inga Daunaravičienė, and they were commented on by Researcher at the Social Policy Department of Vilnius University Dr Jekaterina Navickė.
Pensions received by residents aged 50–74
Based on the data of the Survey “Pensions and participation in labour market”, the State data Agency informs that in 2023 more than a third (35.6 per cent) of the population aged 50–74 received state social insurance pension: statutory pension was received by 39.6 per cent of women and 30.6 per cent of men. 1.4 per cent of people of this age group received statutory and personal pension (from private pension funds or pension insurance), 0.6 per cent – statutory and occupational pension, 0.8 per cent – only occupational pension. 61.5 per cent of residents of this age group did not receive any old–age pension.
9.7 percent of residents aged 50–74 receive disability pension. Slightly more men (10.3 per cent) than women (9.2 per cent) receive such a pension.
The majority (90.4 per cent) of the population aged 50–74 received their first state social insurance old–age pension without any reduction or bonus. 8.4 per cent of the population aged 50–74, more women (8.9 per cent) than men (7.5 per cent), received a reduced pension due to earlier retirement. 1.2 per cent of people aged 50–74 received an increased pension due to retirement deferment.
Participation in the labour market of the population aged 50–74 receiving old–age pension
During 6 months of receiving the first old–age pension, 38.1 per cent of the population aged 50–74 stopped working, men stopped working more often (38.9 per cent) than women (37.6 per cent). A third (32.9 per cent) of the population of this age group were employed and continued working without any changes, 10.8 per cent continued working with some changes (changed job, worked less hours). 14.1 per cent of men and 8.6 per cent of women continued working with certain changes.
30.5 per cent of the population aged 50–74 continued working once they had started receiving old–age pension because it was financially necessary to work, while 28.2 per cent – because it was financially attractive to work. 29.2 per cent of the population of this age continued working because they enjoyed working and being productive, for this reason 35.1 per cent of men and 25.1 per cent of women continued working. 5.4 per cent of residents of this age continued working because they wanted to be socially integrated, women (6.8 per cent) identified this reason more often than men (3.3 per cent).
4.8 per cent of the population aged 50–74 who did not work before retirement returned to the labour market after starting to receive old– age pension. Of them, 2.5 per cent worked occasional work only (less than 3 months), 2.3 per cent of the population of this age, slightly more women (2.4 per cent) than men (2.2 per cent), worked for at least 3 months.
50–74 stopped working due to caring responsibilities or other family reasons: more often women (4.9 per cent) than men (0.9 per cent).
Statistical Survey “Pensions and participation in labour market” was conducted in I–IV quarters 2023 using the sample method. 5.5 thousand of the population aged 50–74 were surveyed. Results of the Survey were recalculated for all residents of this age group. The Survey made it possible to learn about the pensions received by respondents, type thereof, disability pension, situation after starting to receive old-age pension, participation in the labour market when receiving pension.
The Survey in 2023 was carried out in all European Union countries according to a common methodology, so its results are comparable between countries.
Jekaterina Navickė pointed out that the data received in the Survey basically correspond to the results of the Survey of Health, Ageing and Retirement in Europe (SHARE) carried out by Vilnius University. “The proportion of employees aged 55 and over make up around a fifth of all employed persons and this proportion has almost doubled in 15 years. Therefore, it is very important how these people feel in labour market. The aim is not that people of retirement age should necessarily be working, but that they should be able to choose their activities after starting to receive a pension”, said Jekaterina Navickė.
In Lithuania, three quarters of older people say that they would like to leave the labour market when they reach retirement age. She noted that, according to the presented survey, a much smaller proportion of the population actually leaves labour market within 6 months – around 40 per cent only.
“We see a double picture: some people stay in labour market if work is financially rewarding, they get good salaries and have comfortable working conditions. However, the other part has no choice but to work, because otherwise they would not be able to make a living”, Jekaterina Navickė commented.