Pensions in Latvia (pensiju līmeņi)

Latvia's pension system has three levels. The first level is the state old-age pension paid by the State Social Insurance Agency (VSAA). The second level is the state funded pension scheme, where part of your contributions is invested for you. The third level is voluntary saving in private pension funds. Contributions for pension capital equal 20% of your insured earnings, shared between the first and second levels and included in the 34.09% social insurance rate (2026); members of the second level pay nothing extra.

State old-age pension (vecuma pensija)

• Pension age: 65 (since 1 January 2025).
• Minimum insurance record: 20 years (since 2025).
• Early pension: up to 2 years before pension age with at least 30 years of insurance. Until pension age it is paid at 50% if you do not work and not at all while you work, and the amount stays permanently at the early level.
• Amount: your registered and indexed pension capital divided by the expected number of payment years. Working longer or retiring later raises it. A minimum pension applies: a base of €213 multiplied by 1.2, plus 2% of the base for each insurance year over 20 (2026).
• No pension right? Residents of pension age who are not entitled to a pension can receive the state social security benefit of €187 a month (2026).
• Applying: no earlier than one month before you reach pension age. If you apply late, payment goes back at most 6 months.
• Tax: pensioners have a non-taxable minimum of €1,000 a month (2026).

Second and third levels

• Second level (valsts fondēto pensiju shēma): compulsory for people born after 1 July 1971, voluntary for those born between 2 July 1951 and 1 July 1971. You choose an investment plan run by a fund manager. At retirement you can add the capital to your state pension or buy a lifetime annuity from an insurer.
• Third level: private pension funds and savings life insurance. Contributions are deductible up to 10% of your taxable income and at most €4,000 a year (2026).

Working abroad: agreements

• Within the EU, EEA and Switzerland, the EU coordination rules (Regulation (EC) No 883/2004) apply, and through the withdrawal agreement also for the United Kingdom. If your Latvian record is too short, insurance periods from these countries count towards your entitlement, but Latvia pays only on the capital built up in Latvia.
• Latvia also has bilateral social security agreements with some countries, for example the United States, Canada, Australia, Ukraine and Moldova. VSAA publishes the full list.
• Since 17 June 2023, Latvian old-age pensions can also be paid to people living outside the EU.

Common pitfalls for newcomers

• With fewer than 20 years of insurance you get no Latvian old-age pension unless periods from the EU or an agreement country can be added. Check your record in the VSAA e-services early.
• Contributions count only if they were actually paid. Undeclared work leaves gaps in your capital.
• If you move abroad (outside the cases covered by EU rules or an agreement) and keep receiving your Latvian pension, send VSAA proof that you are alive each year between 1 October and 15 December, or payments can stop.
• An early pension is permanent. You cannot raise it later by waiting until 65.

Official guidance: VSAA: old-age pension, VSAA: second pension level, VSAA: pensions in the EU, VSAA: intergovernmental agreements, VID: deductible expenses