Is the Slovakian pension system prepared for the next decades?
| Authors | |
|---|---|
| Year of publication | 2021 |
| Type | Article in Proceedings |
| Conference | Proceedings of the international scientific conference Hradec Economic Days 2021 |
| MU Faculty or unit | |
| Citation | |
| Web | https://digilib.uhk.cz/bitstream/handle/20.500.12603/489/BUCEK_Jakub_Michal_TOMCO.pdf?sequence=1&isAllowed=y |
| Doi | http://dx.doi.org/10.36689/uhk/hed/2021-01-011 |
| Keywords | pension system; financial stability; minimum retirement age |
| Description | This paper compares the financial stability of two alternative pension systems in Slovakia – the first one with gradually increasing retirement age and the second one with fixed retirement age. To achieve this goal, we have created a population projection based on the cohort-component model and the financial flows model working with the income and expenditure of the pension fund. We have found that the overall population will face a gradual decline in the size, however the post-productive population will increase until 2060s, which will increase the pressure on the public finance. While the pension system with fixed retirement age will cause higher burden on the pension fund, the costs of the pension system with flexible retirement age are passed on to other areas of the social security system. It is necessary to employ other policies that will increase the productivity, support natality to reverse the negative population projection, or liberate the labour migration to stabilize the public finance in the long run. |
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