Regional Formation and Development Studies

The aim of the paper is to review the global research on household saving behaviour, to review the scientific literature, and to consider the selection of the optimal research methodology for the thesis ‘Lithuanian Households’ Saving Behaviour for Retirement in an Ageing Society’. The paper reviews the main theoretical perspectives defining household behaviour and the methodological approaches of research conducted in the USA, Germany, Japan, the UK and Scandinavian countries. The traditional approach of economists to the human being in the economy is compared with the theoretical perspective of behavioural economists. The article presents recommendations for the methodology of research in Lithuania, by proposing to analyse the data from the Household Finance and Consumption Survey, and, based on the assumptions of behavioural economists, to provide recommendations to help people save more for retirement.

Pension systems have become one of the main priorities for the national governments. Developed countries population is getting older by putting the pressure on the state budgets and work age people tax load. The current pension system in Latvia performs according to regulation of state compulsory unfunded pension scheme since 1996 and regulation of the state funded or accumulated pension scheme since 2001. The third pension system pillar is private voluntary pension schemes realized in form of people contributions into pension funds and life insurance policies. Aim of the research – deeper analyses of voluntary private investments as the pension system part and its development challenges in Latvia. Research methods: scientific publications and previous conducted research analysis; analysis of time series on private pension fund developments in Latvia and comparisons with the situation in other OECD countries. The authors were looking for answer on the question – can voluntary private investments cover the gap between pre-retirement and after-retirement income of population in Latvia and what are the pre-conditions for it.