6533b7d8fe1ef96bd126ab3f

RESEARCH PRODUCT

Financial Performance of Mandatory Private Pension Funds in Countries of Central and Eastern Europe. A Comparative Study Between Romania and Slovakia

Nicolae BalteșȘTefania Amalia Jimon

subject

reform of pension systemslcsh:HB71-74lcsh:Economics as a scienceprivately managed pension fundscentral and eastern europelcsh:Businesslcsh:HF5001-6182

description

Decreased birth rate and aging population represent a treat to PAYG public pension systems implemented in countries of Central and Eastern Europe, due to the fact that the financing is direct dependent of the social contributions payed by the taxpayers active on labor market. As solution, World Bank promotes the diversification of funding sources for pension systems and a multi-pillar structure that includes privately managed pension funds. The purpose of this paper is to present how the multi-pillar structure was implemented in Romania and Slovakia, focusing on the evolution and performance of mandatory private pension funds. The main conclusion of this article highlights that in the current demographic context, privately managed pension funds can be a mean of providing the necessary resources to the elderly population during retirement.

yearjournalcountryeditionlanguage
2020-01-01Ovidius University Annals: Economic Sciences Series