Lilita Seimuškāne, Associate Professor and Director of the study program at the Faculty of Economics and Social Sciences (FESS) of the University of Latvia (UL), is currently working on the project “The Potential of the Silver Economy in Latvia’s Regions and Its Influencing Factors.” She emphasizes several dimensions of the silver economy within the national economy, both as a potential workforce and as a consumer group seeking more tailored and appropriate services and products.
Over the past 5–10 years, the silver economy has become a topical interdisciplinary subject. It concerns a branch of the economy and its potential related to population ageing and the needs that arise from it.
"The silver economy can be viewed from many different perspectives. For example, from a demographic perspective, society is ageing, the age structure of the population is changing, and the number of people of working age is declining. Therefore, the issue of labour shortages becomes increasingly relevant. In this century, a person who has reached retirement age may still be quite vital, and if health allows and they are willing, can continue working. Ideally, they are motivated by a desire for self-fulfilment rather than survival. Just recently, the Danish Parliament passed a law to gradually increase the retirement age to 70. The Danes adjust this index based on life expectancy and review it every five years. This trend indicates that demographic changes in population age structure require a completely new outlook on different age groups," explains Seimuškāne.
However, raising the retirement age cannot be applied universally, as regional differences are significant, not only between countries but also within the administrative territories of a single country.
Next, she highlights the economic perspective. According to the European Commission’s 2023 estimates, the potential of the silver economy could reach 28% of the EU’s GDP by 2025.
A crucial aspect is social and healthcare policy. As people live longer, they require various healthcare services. Seimuškāne explains that in Latvia, a persistently urgent issue is timely access to medical and healthcare services. Failure to address this issue results in increased costs for social services and assistance, affecting both national and local government budgets.
"For example, data from another study I participated in showed a sharp increase in the costs of long-term social care services between 2018 and 2023—the cost per service almost doubled on average. We also have considerable territorial disparities, including the financial capabilities of municipalities and individuals, which influence the standard of living and well-being in a given location," the researcher explains.
Material Considerations, Health, and Job Opportunities as Key Factors
A recent survey conducted within the project, in cooperation with the public opinion research company SKDS, revealed that approximately 30% of people past working age are still employed. The most significant factor is material considerations.
“People work because they want to live out their later years with dignity. That’s just one reason. Among the factors motivating continued employment are also interesting and enjoyable work, the opportunity to socialise, and the avoidance of boredom when not working. This suggests that the workplace also serves as a crucial space for socialisation and self-discovery. One-third say they continue to work because of a favourable attitude from their employer. These factors relate to respondents aged 65 and older.”
Nearly 63% of respondents indicated that job opportunities in their place of residence are low or very low for people of their age group. A similar number indicated a lack of job opportunities in their municipalities. 43% said they currently work or would like to work in a paid job, while 10% would be willing to work if there were job opportunities nearby.
"This suggests that the issue of employment should be addressed not only at the municipal level but also together with business organisations. We often hear signals from business representatives that there is a labour shortage, but the solution is almost always sought outside of Latvia. In my view, the 65+ human resource is vastly underutilised," Seimuškāne emphasises. "This brings us to our most pressing issue—health-related reasons. This factor ranks first, by far, cited by almost 49% of respondents. Other reasons include the desire to focus on other activities, such as housework, gardening, or enjoying life through travel or hobbies. One in ten seniors believe retirees should not work at all," notes the researcher.
In collaboration with the project’s scientific advisor, Professor Biruta Sloka, the socio-demographic profile of individuals past working age was analysed using data from the Central Statistical Bureau (CSB) and the 2023 Labour Force Survey.
"In summary, a person aged 65 to 74, who is still working, lives in an urban area, especially in Riga, and is well-educated, holding a higher or vocational secondary education. Fewer working individuals in this age group have only a primary education. Moreover, the survey results showed excellent basic digital skills, with many 65+ respondents using digital tools independently," Seimuškāne notes.
One Pensioner per Three Working-Age People
"As of early 2024, in Latvia, 23% of the population was past working age - nearly one in four. In certain cities, such as Rēzekne, Daugavpils, and Ventspils, over 25% of the residents are past working age. This underlines the growing importance of utilising this human resource in Latvia, particularly from a national social policy perspective," says the researcher.
According to the CSB, as of early 2024, there were 369 retirees per 1,000 working-age individuals, or one pensioner for every three working-age individuals. If current demographic trends continue, by 2060, this ratio is expected to be one retiree for every two working-age people.
"It is evident that in many EU countries, there will be increasing pressure on social budgets and care services, which will likely become the two largest national expenditure items. Combined with emigration trends, this places a responsibility to rethink how to maintain the balance between the lives of those beyond working age and those still in the workforce," Seimuškāne emphasises.
Asked whether the research results will be presented to decision-makers, Seimuškāne replies affirmatively: "First, I would like to present them to municipal representatives and hear their stance on these issues. I also intend to discuss this with business associations."
These are just a few aspects covered in the survey, which includes comprehensive material on attitudes toward seniors, their living conditions, digital literacy, social engagement, and more.
In conclusion, Seimuškāne adds that the survey surprised her in one regard: "For certain reasons, the survey was conducted using an online questionnaire (CAWI). I was concerned whether I could reach the necessary sample in the older age group. These concerns were unfounded—the required respondent groups, including those aged 76 and above, were successfully reached. However, the online format may have shown the more favourable side of the issue. Therefore, in the next stages of the research, I plan to use other research methods as well."
The article was published in the latest issue of the University of Latvia's journal Alma Mater. The full issue is available here.
The project “The Potential of the Silver Economy in Latvia’s Regions and Its Influencing Factors” is one of the activities supported by the Recovery and Resilience Facility under the project “Internal and External Consolidation of the University of Latvia” (No. 5.2.1.1.i.0/2/24/I/CFLA/007).
