89 research outputs found
Which choice of participation level is the rational one for second-pillar pension funds in Lithuania?
No full textIn 2013, new rules for participants in second-pillar pension funds were introduced in Lithuania. Participants of private second-pillar pension funds had to make a choice regarding their further level of participation. Three options were given: a lower contribution rate, a higher contribution rate with a governmental subsidy, or stopping further contributions to the second-pillar system. The aim of this research is to evaluate the best rational choice for individuals of different gender and age, depending on the expected financial return to their second-pillar accounts. The results reveal that participating in the second-pillar system is always more convenient than abandoning participation in it, even under the conservative hypothesis of a zero real rate of return. A higher contribution rate can be the best choice for young and middle-aged working persons due to a governmental subsidy, moreover, it is more convenient because of higher expected returns
Contribution options and individual returns after the second pillar pension reform in Lithuania
No full textThe 2013 pension reform in Lithuania forced workers to choose their level of participation to the second pillar system. Three options were given: a lower contribution rate, a higher contribution rate with governmental subsidy, and the exit from the second pillar system. The aim of this article is to evaluate the best rational choice for individuals of different gender and age, depending on the expected financial returns of their second pillar accounts. Results reveal that participation in the second pillar system is always more convenient than the abandonment, even under the conservative hypothesis of zero real rate of return. Because of the governmental subsidy, the higher contribution rate can be the best choice for young and middle-aged workers, and its convenience increases with higher expected returns. The higher contribution seems to offer favourable returns to Lithuanian workers, also when compared with similar estimates for pension systems in other countrie
Assessment of reverse mortgage business development opportunities: lithuania.
No full textThe aim of this MA thesis is to distinguish reverse mortgage business development opportunities by analysing scientific theses, calculated pessimistic, realistic, optimistic prognoses and qualitative survey’s results. The methods used in this MA thesis are analysis of scientific literature sources, comparative analysis between multiple literature sources and qualitative research. The main conclusions of this MA thesis are that business based on reverse mortgage can develop in the Lithuanian market, although a legal framework must be created and approved. After this step the Lithuanian market should accustom oneself to this product for at least 10 years to ensure effective development for reverse mortgage business
The financial analysis and the business development possibilities’ assessment of jsc “verža“.
No full textThe work is designed to examine the financial analysis of the value and importance. During familiarization with the basic concepts and definitions of JSC "Verža" financial analysis and risk assessment, based on available data, set the development options. The object of research - JSC ,,Verža“ financial performance. The object - Financial Analysis Examination. The aim - in conceptual use of research work in the relevant financial analysis methods and indicators as well as the company's financial statements, conducted by JSC ,,Verža“ financial performance analysis and identify development opportunities. Work tasks: 1. To analyze the financial analysis of the theoretical aspects: to meet the goals, objectives, key concepts and indicators; 2. Perform JSC ,,Verža“ financial performance and their articles and dynamics analysis. To evaluate the state of the company according to profitability, solvency and performance indicators. 3. Based on the financial results of the analysis to determine JSC ,,Verža“ development opportunities. Working hypothesis: the development of the company's success is directly dependent on the current performance. Structure: The work consists of an introduction, three main working parts, conclusions and suggestions, summary, references, appendixes. A total of 46 pages. without any additions., Fig. 8, Table 5. Work was used by these authors: J. Mackevičiaus D. Poškaitės D. Šlekienės I. Klimavičienės B. Ковалёв and other authors. It was found that during the 2013 - 2014 period JSC ,,Verža“ activity is characterized by positive dynamics of the activity is stable and klestenti. None of the factors do not threaten or slightly influenced its stability. After a completed risk assessment analysis and use Almanto Z model, it is possible to determine that the company's financial statements of the changes in company's financial stability assessment, using the relative performance of systems and the solvency and profitability of communication study, it was possible to make sure that JSC ,,Verža“ bankruptcy is not at stake
Theory and Practice of Sustainable Economic Development
No full textThe aim of this Special Issue is to engage readers with the latest theoretical advancements and practical approaches in sustainable economic development. As the global economy faces mounting pressures from environmental degradation, social inequality, and resource limitations, the need to integrate sustainability into economic systems has never been more urgent. This issue brings together contributions that bridge theory and practice, exploring innovative models, empirical research, and policy frameworks that support long-term economic resilience without compromising ecological integrity or social well-being. From green economy strategies and green innovation to inclusive growth policies and sustainable business practices, the articles in this collection illuminate diverse pathways toward sustainable development. Leading scholars and practitioners offer critical insights into how economies can be restructured to align with the principles of sustainability, fostering equitable prosperity within planetary boundaries
Pensijų sistemos reformos rezultatų vertinimas (Lietuvos atvejis).
No full textIn the thesis theoretical and empirical analysis of old-age pension scheme models have been done, identified and assessed reasons, which determine the pension system parameters of the model selection and pension system reform. Based on the analysis and synthesis of scientific literature the model of pension system reform results evaluation is created, which applied for the analysis of Lithuanian pension system reform results. The main objective of the thesis – to assess the social and economic reasons of the Lithuanian pension system reform, and the results achieved in the reform, as well as to provide possible solutions to the further development of the pension system reform, taking into account the circumstances caused by global financial crisis. By analyzing the results of Lithuanian pension systems reform particular attention is paid to the evaluation of investment performance of private second pillar pension funds’. By identifying and evaluating the changes of Lithuanian pension system’s parameters, which were made in 2009 and their impact on the reform’s potential development in the future, and present possible solutions for further development of pension system reform in light of current economic and social environment. According to the conclusions and proposals, the Lithuanian pension system reform’s parameters may be adjusted. Thesis material forms the basis for further scientific and applied research to assess Lithuanian and other countries’ pension system reforms
The Evaluation of Pension Systems Reform Results (Lithuanian Case).
No full textIn the thesis theoretical and empirical analysis of old-age pension scheme models have been done, identified and assessed reasons, which determine the pension system parameters of the model selection and pension system reform. Based on the analysis and synthesis of scientific literature the model of pension system reform results evaluation is created, which applied for the analysis of Lithuanian pension system reform results. The main objective of the thesis – to assess the social and economic reasons of the Lithuanian pension system reform, and the results achieved in the reform, as well as to provide possible solutions to the further development of the pension system reform, taking into account the circumstances caused by global financial crisis. By analyzing the results of Lithuanian pension systems reform particular attention is paid to the evaluation of investment performance of private second pillar pension funds’. By identifying and evaluating the changes of Lithuanian pension system’s parameters, which were made in 2009 and their impact on the reform’s potential development in the future, and present possible solutions for further development of pension system reform in light of current economic and social environment. According to the conclusions and proposals, the Lithuanian pension system reform’s parameters may be adjusted. Thesis material forms the basis for further scientific and applied research to assess Lithuanian and other countries’ pension system reforms
Evaluation of "Life Cycle” funds investment strategy integration into fully funded second pillar pension system
No full textReikšminiai žodžiai: Gyvenimo ciklo fondų sistema; Investicijų valdymas; Privatūs antros pakopos pensijų fondai; 2nd pillar private pension funds; Fully funded second pillar private pension funds; Investment management; Life Cycle funds system; Life Cycle funds' systemGlobal financial crisis has highlighted weaknesses in the financial systems. Considering the negative consequences of the financial crisis which affected Lithuanian financial market, when assets of 2nd pillar pension funds significantly decreased, it was proposed mandatory transformation of existing fully funded 2nd pillar pension system from "Life Style" investment funds to "Life Cycle" investment funds’ system. The empirical analysis enabled to identify the main parameters of "Life Cycle" funds’ system. Moreover the main possible values of the parameters are identified in the article. Comparison of proposed "Life Cycle" funds model with existing "Life Style" funds model allowed to identify the pros and cons of the models. "Life Style" funds’ investment strategy is based on the investment risk tolerance idea. The active behavior of pension funds participant is expected in such system. Depending on the age, participant of 2nd pillar pension system would switch pension fund choosing more conservative investment strategy towards the beginning of retirement age. However the data in Lithuania shows, that big number of 2nd pillar pension system participants’ chose pension fund (and investment strategy at the same time), which is not correspond to investment risk profile. Moreover pension fund switch performed neither on the appropriate time, nor to the lower investment risk fund closer to retirement age, or pension fund is not changed at all during the accumulation period. As results of recent global financial crisis showed, it can significantly reduce the participant’s accumulated capital. "Life Cycle" funds’ system consists of investment funds, which assets allocation is diversified according investment risk level of financial asset classes (e.g. shares, bonds) and funds’ investment strategy based on permanent reduce of investment risk level, closer to the beginning of participant’s retirement age. Transformation of 2nd pillar pension system from "Life Style" funds basis to "Life Cycle" funds’ system would resolve the main current problem – the participants will not need to switch to lower investment risk pension fund closer to retirement age. It will be done by pension accumulation company permanently during the accumulation period. After comparative analysis of the "Life Cycle" and "Life Style" funds’ systems, some advantages of "Life Cycle" funds’ system was identified. Firstly, professional investor – pension accumulation company – is responsible for balancing the investment risk during the accumulation period. In addition the investment risk is spread over the entire accumulation period: it might ensure higher investment returns when pension fund participant is younger and automatically reduces impact of investment risk to accumulated capital near the retirement age. Therefore accumulated capital is protected from potential losses before retirement age. [...
ASSESSING THE IMPACT OF SECOND PILLAR COMPONENT ON OLD AGE PENSION IN LITHUANIA
No full textAbstract. The aim of the study was is to evaluate the impact of a privately accumulated second pillar component on old-age pension. This evaluation is based on quantitative, statistical data and qualitative analysis of pension accumulation results in second pillar during the years 2004–2012. Three groups of different monthly wage size (low, medium, and high) earners are analyzed by calculating the accumulated amounts and old-age pension values of persons who joined and who did not join the second pillar pension funds in 2004 and who retired in the beginning of 2013. The pension reform success (or failure) is evaluated from the point of view of old age pension beneficiaries by comparison of gain or loss of all three groups of participants due to participation in second pillar pension funds. The results show that due to the longer life expectancy the capital accumulated by women in the second pillar does not exceed the present value of loss in the pay-as-you-go system. The comparisonof “official” annuities exposes a more optimistic result for both genders of participants of fully funded private second pillar pension funds, but is not confirmed by commercial annuities.Key words: old-age pension, private second pillar pension funds, pension refor
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