Number of pension recipients and the average size of pension in 2006

23.03.2007

According to the National Insurance Agency, the number of pension recipients at the end of 2006 was 576.1 thsd and in comparison with 2005 it has decreased by 12.7 thsd or 2.2% (according to the information of the Central Statistical Bureau for the preparation of which data from the National Insurance Agency were used). A fall in the number of pension recipients has been observed since 1999: but especially rapid it was in last three years - 9.0 thsd or 1.5% in 2004, 9.3 thsd or 1.6% in 2005 and 12.7 thsd or 2.2% in 2006.

The majority (82%) of the pension recipients are old-age pensioners. The retirement age according to the Law was 62 years for men in 2006 and 60.5 years for women until July 1, from July 1 it was 61 year. In 2006 there were 11.7 thsd newly granted old age pensions (5.0 thsd to women and 6.7 thsd to men); the average size of the pension was LVL 114.33. The size of the newly granted pension to men was higher than the pension granted to women (LVL 124.39 and LVL 100.94, respectively). As has been observed in 2006, the size of the newly granted old age pension continues to go up: in comparison to 2005, the newly granted pension in 2006 has increased on average by LVL 19.89. This can be largely explained by the increasing average earnings-related contributions. The second largest group of pension recipients is disabled persons (66.7 thsd) and their number is decreasing year by year and in comparison to the previous year, the number of recipients of disability pension in 2006 decreased by 6.9 thsd or 9.4%.

Number of pension recipients
(At the end of the year; thsd persons)

2003

2004

2005

2006

Changes in pension recipient number in 2006 against 2005, in %

Number of pension recipients, in thsd.1

607.1

598.1

588.8

576.1

- 2.2

Old-age pensions

487.9

481.7

475.6

472.1

- 0.7

Disability pensions

75.9

74.6

73.6

66.7

- 9.4

Survivor’s pensions2

36.0

34.8

32.9

31.0

- 5.8

Service pensions

4.9

4.7

4.4

4.1

- 6.8

Pensions under special regulations

2.4

2.3

2.2

2.1

- 4.5

_____________________________
1
Excluding pension recipients registered with the Ministry of Interior Affairs and the Ministry of Defence
2The total number of family members who are not able to work and have lost their breadwinner.

Compared to 2005, the average size of the pension last year increased and reached LVL 92.21 on average per year. The increase (18.3%) in the average size of pension paid by the State Social Insurance Agency exceeded the increase (6.5%) in the consumer price index registered in the country. The average size of the monthly old-age pension paid in 2006 was nearly 15.42 lats higher compared to 2005. The lowest increase (LVL 6.74) in 2006 was in the size of the disability pension.

Average size of state pensions paid
(Average per month, in lats)

2003

2004

2005

2006

Changes in state pension size paid in 2006 against 2005, in %

Monthly average size of pensions paid to pension recipients under the State Social Insurance 1

62.49

68.83

77.95

92.21

18.3

Old-age pensions

64.34

70.89

80.53

95.95

19.1

Disability pensions

54.64

60.16

66.89

73.63

10.1

Survivor’s pensions2

47.34

51.80

57.40

67.33

17.3

Service pensions

73.08

78.11

86.95

95.79

10.2

Pensions under special regulations

89.17

98.88

112.06

125.88

12.3

___________________________
1
Excluding pension recipients registered with the Ministry of Interior Affairs and the Ministry of Defence
2 The total number of family members who are not able to work and have lost their breadwinner.

In 2006 most of the pension recipients (33.9%) received a pension ranging from LVL 90.01 to LVL100.00. 37.9% of the old age pension recipients (11.1% in 2005) received a pension over 100 lats. As can be seen in the Table below, the positive trend that became noticeable in previous years continued in 2006 – the number of pensioners receiving a small pension is decreasing. Compared to 2005, the number of old age pension recipients whose pension does not exceed 60 lats decreased 4 times. The indexation of pensions in 2006 took place twice – in April and October.

Old age pension recipients by average size of pension

2005

2006

Number

%

Number

%

Total

475623

100.0

472140

100.0

Of which with average size of granted monthly pension (in lats):

30.01-40.00

274

0.1

-

-

40.01-50.00

10892

2.3

73

0.0

50.01-60.00

24772

5.2

8522

1.8

60.01-70.00

99162

20.8

17760

3.8

70.01-80.00

201245

42.3

22425

4.7

80.01-90.00

64412

13.5

84547

17.9

90.01-100.00

21956

4.6

160107

33.9

100.01-150.00

35010

7.4

153540

32.5

150.01-200.00

11520

2.4

15133

3.2

200.01-400.00

5339

1.1

8737

1.9

400.01 and more

1041

0.2

1296

0.3

In Latvia under the risk of poverty are 19% of population, according to data of CSB survey on population income and life conditions (EU-SILC survey 2005). Of the pensioner total number 24% are under this risk. For single pensioners who reached age of 65 and older this risk is considerably higher- from the total number 45% of them are under this risk.

The pensioner expenditure considerably differs from the total expenditure of the state population. In 2005 retired people almost a half (43%) of their pension spent for food, to cover the expenses of household, water, electricity, gas and other fuel consumption - 19% and for health–10%, according to household budget survey data. Latvia population of the total income for food spent 31%, to cover the expenses of household, water, electricity, gas and other fuel consumption - 12%, and for health – 4%.

Prepared by Living Standard’s Statistics Section
Tel.7366847
Kārlis Smudzis