| Abstract [eng] |
The Master's thesis examines the Swedish Notional Defined Contribution (NDC) model. The NDC model is characterized by a clear link between contributions and future benefits. The NDC's mechanism ensures that the pension system automatically adapts to demographic and economic changes in the market. This thesis examines how the notional account system functions using Lithuanian data. Different scenarios are modeled to evaluate the system's financial stability: increased life expectancy, wage growth, the COVID-19 crisis. For each scenario, the annuity factor, initial pension amount, and replacement rate at retirement are calculated. |
