Parental Bonus in Pension Systems: The Case of Slovakia
Parental Bonus in Pension Systems: The Case of Slovakia
Author(s): Tatiana Jašurková, Igor MelicherčíkSubject(s): National Economy, Economic history, Social history, Public Finances, Human Resources in Economy, Socio-Economic Research
Published by: SAV - Slovenská akadémia vied - Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: parental bonus; child-related benefits; pension system in Slovakia
Summary/Abstract: Population aging and low birth rates are linked to the problem of unsustainability of ongoing pension systems. Adjusting such pension systems is inevitable due to unfavorable demographic predictions. This paper discusses introducing child-related benefits into pension system models, examining their advantages and disadvantages. A model with child-related pension benefits dependent on the average wage is examined regarding the effects of the child factor on individual fertility and private savings. The size of the child factor in Slovakia's pension system and several alternatives are estimated. The optimal setting of the pension system model is presented and compared with alternatives. The paper shows that the current pension system can be improved by more generous awarding of personal wage points for raising children.
Journal: Ekonomický časopis
- Issue Year: 72/2024
- Issue No: 05-06
- Page Range: 261-282
- Page Count: 22
- Language: English
