2026-06-19
Indexation, Reserves, and Crisis Resilience: An Assessment of Lithuania’s State Social Insurance Fund
A new analysis by Lietuvos bankas shows that population ageing will place increasing pressure on the finances of Lithuania’s State Social Insurance Fund (Sodra) in the future. While the reserve fund can help mitigate some of these effects, it alone will not be sufficient to ensure the long-term sustainability of the pension system.
The authors of the study emphasize that reserves cannot solve the challenges posed by demographic ageing. Ensuring adequate pension financing will inevitably require additional measures, such as higher social insurance contributions, a larger share of personal income tax revenues allocated to Sodra, or other fiscal policy instruments.