Lithuania simplifies withdrawal from private pension funds
Lithuania's pension reform, effective January 1, 2026, makes it easier to exit private pension funds. The changes were passed in summer 2025 by the Social Democratic-led coalition.
Lithuania has implemented another pension reform that significantly simplifies withdrawal from the so-called second pillar pension accumulation system. Amendments to the Pension Accumulation Law take effect on January 1, 2026.
The second pillar system has been in place since 2004 and has undergone multiple reforms. However, 2026 may present the biggest challenge yet, as participants will now find it much easier to leave the system.
The reform was initiated by the coalition led by the Social Democratic Party, which won the parliamentary elections in autumn 2024. The changes were adopted in summer 2025. A key figure in the reform was Inga Ruginiene, who became Minister of Social Security and Labor after the elections and pushed the amendments forward. Last autumn, Ruginiene was unexpectedly appointed prime minister.
