The Demographic Evolution and the Sustainability of the Pension Systems Cover Image

The Demographic Evolution and the Sustainability of the Pension Systems
The Demographic Evolution and the Sustainability of the Pension Systems

Author(s): Cristina Cojocaru Borovina, Christina Marta Suciu
Subject(s): Supranational / Global Economy, Culture and social structure , Demography and human biology, Financial Markets, Human Resources in Economy
Published by: Editura Universitaria Craiova
Keywords: population; aging; employment; social securities; pension system;

Summary/Abstract: The aim of this article is to perform an ample and objective analysis of the long-term demographic evolution and sustainability of the pension systems in the European Union, with a focus on the one existing in Romania. The financial crisis and the economic recession have aggravated even more the base problem, i.e. the aging of the population. Many European pension systems are facing great difficulties in achieving their objectives regarding pensions, against the background of the increasing unemployment, decreasing economic growth, increasing public debt levels and volatility of the financial markets. The analysis of the socio-demographic situation in Romania reflects the fact that the negative effects on the financial sustainability of the public pension system, caused by the aging of the population, are caused by three important factors, i.e.: the population life expectancy increase, birth rate decrease, and last but not least, migration increase. Moreover, the pension system in Romania is also affected by the negative effects of certain specific elements, such as: massive anticipated retirements in 1990, which have decreased the number of taxpayers by approx. 5%, and have increased the number of pensioners by over 16%; the considerable increase of the number of retirements caused by falling into occupational groups (retirements by five-ten years earlier than the standard retirement age); relatively easy manner of obtaining an invalidity pension without a legal basis. Within this study, we have considered it necessary to provide comparative information regarding the situation of the pension systems in the European Union member states, as well as the demographic evolutions predicted by the competent institutions of the European Commission, highlighting the position occupied by Romania in the unitary entirety of the European Union.

  • Issue Year: 2016
  • Issue No: 26
  • Page Range: 5-14
  • Page Count: 10
  • Language: English