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- Title
Self-Employed Ones Deserve a Pension Too! The Regulation Background of the Pension Savings for the Self-Employed Persons in Latvia.
- Authors
Dundure, Evija
- Abstract
Once countries with the pension system construction based on the three pillars - compulsory and voluntary - are considered, the expected income after retirement for the wage earners should be on the adequate level. Nevertheless, it needs to also be taken into the consideration that there are other categories, such as self-employed persons, royalties receivers, small business owners and the employees of special regime tax-paying companies (further in the text - selfemployed persons). These individuals have limited access to the state guaranteed pension (1st pillar) and employer-based supplementary pension schemes (2nd pillar). Consequently, they must rely on private pension savings (better known as the "third-pillar"). In addition, the governments of different countries carry out diverse tax-policies, especially for low earnings receivers. The aim of this paper is to analyze the pension system for self-employed persons in Latvia and enlighten possible scenarios of savings for income after retirement. The study is based on analysis of legislative documents, and comparisons of legislative norms, calculations of a functional relationship and regression analyses. Although the Latvian government's awareness of current situation results in attempts to maximize the pension income level, the results of this paper highlight the exceptional situation of self-employed persons in Latvia in comparison with the employed ones. The growing trend of number of self-employed persons in Latvia enlightens the necessity for the improvements of regulations to provide pensions on adequate level.
- Subjects
LATVIA; FREELANCERS; PENSIONS; LEGISLATIVE hearings; RETIREMENT income; SITUATIONAL awareness; BABY boom generation
- Publication
Balkan & Near Eastern Journal of Social Sciences (BNEJSS), 2020, Vol 6, Issue 4, p14
- ISSN
2149-9314
- Publication type
Article