LITHUANIA - A large number of Lithuanians have opted for the private pensions scheme from 2004, the Baltic News Service has reported.
The state-run social insurance fund SoDra has registered 420,446 agreements between pension fund managers and people who have decided to join private pension schemes.
The number of agreements registered by the fund exceeded the expectations of the ministry of social welfare and labour, and the companies running private pension funds, the news report added.
In the first year of the reform, employees would contribute 2.5% of their income to cumulative pension funds, which amounts to employees' mandatory insurance contribution under the current system. This percentage rate will be increased by 1 point annually until it reaches 5.5% in 2007.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.