Pension systems as risk management: A case of the Baltic states

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


This chapter explores how the pension systems in the Baltic States are attempting to fulfil their main task of preventing the risk of poverty among the elderly. It considers the development of the pension systems of Estonia, Latvia and Lithuania, as well as the arrangement of their pillars. While the tendency for a stronger vertical redistribution is present in Estonia and Lithuania, Latvia generally maintains a neoliberal approach of individual responsibility. These countries use a wide range of different risk management methods: risk sharing as the main method of social insurance in pay-as-you-go pillars; risk mitigation by maintaining individual pension accumulation accounts and imposing pension regulation and control over the performance of pension system actors; and risks transfer between the pillars and the actors. Additionally, risk retention and risk avoidance strategies are also considered on an individual and state level.

Original languageEnglish
Title of host publicationChallenges to the Welfare State
Subtitle of host publicationFamily and Pension Policies in the Baltic and Nordic Countries
EditorsJolanta Aidukaite, Sven E. O. Hort, Stein Kuhnle
PublisherEdward Elgar Publishing Ltd.
Number of pages22
ISBN (Electronic)9781839106118
ISBN (Print)9781839106101
Publication statusPublished - 1 Jan 2021
Externally publishedYes

Publication series

NameNew Horizons in Social Policy

Field of Science*

  • 5.6 Political science
  • 5.2 Economy and Business

Publication Type*

  • 3.1. Articles or chapters in proceedings/scientific books indexed in Web of Science and/or Scopus database

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