Ruginienė sets 80% pension replacement rate as long-term goal

Lithuania’s long-term goal should be for the average old-age pension to equal 80% of average earnings, Social Security and Labour Minister Inga Ruginienė said on Wednesday, LRT reported.

Ruginienė said the target would help people retire without feeling impoverished and allow them to rest, travel and spend time on themselves. She said reaching it would require continued investment in the country’s social protection system.

The nearer-term goal is for the average old-age pension to reach at least half the average wage. If pensions continue rising at the current pace, Lithuania could approach that threshold by 2029, Ruginienė said. She described 50% as too low a target, but said the pace of increases should be maintained despite pressure on the budget.

The current government’s aim is for the old-age pension to reach at least half the country’s average net wage. The pension-to-net-wage ratio is forecast to be 47.4% this year.

The average old-age pension is expected to rise by about 10.4% in 2027, to 825 euros. For people with the required years of service, it is forecast to increase by about 10.9%, to 895 euros. The Social Security and Labour Ministry estimates that next year the pension replacement rate will be 48.1% for the average pension and 52.2% for recipients with the required service record. The final indexation rates will be set out in the state budget proposal.

In August 2026, Lithuania had about 641,000 old-age pension recipients. The average pension was nearly 747 euros, rising to 807 euros for those with the required years of service.