A significant reduction in the number of able-bodied people is coming in Latvia. This is stated by experts in the study of the Organization for Security and Cooperation in Europe (OECD) “Pensions at a Glance 2019”.
So, they predict that by 2020 the number of able-bodied people will decrease by about 40%.
In accordance with the Latvian legislation, a group of 15 years is considered to be able-bodied until reaching the retirement age, which will reach 65 years in Latvia by 2025.
OECD predicts that in all countries included in the organization, the number of residents aged 20 to 64 years will decrease by 10%.
In Latvia and Lithuania, these processes will generally proceed at an accelerated pace. Latvia ranks third in the rate of decline in the working-age population. And an increase in the share of pensioners will lead to a threat to the pension system.
According to the OECD, among people over 65 32.7% are on the verge of poverty, that is, their income is less than 50% of the median income of the population. In Latvia, 38.8% of women and 20% of men are on the verge of poverty.
This is not surprising: crowds are fleeing the country. Someone leave to work, and then return. But many eventually remain abroad, where the grass is greener and the sun brighter.