DEMOGRAPHIC TRANSITION, CHANGES IN THE STRUCTURE OF LABOUR MARKET AND THE PENSION SYSTEM CRISIS

In the recent years a lot of countries have been adapting their pension systems in quite different circumstances compared to the circumstances in the beginning. In spite of the great differences, all pension systems have some common features. From the historical point of view and considering the period and global frame of their development, these systems began in similar conditions. Discussions on the future pension systems development have lasted for more than fifteen years. Discussions were focused on three main aspects:
– Concerns on demographic changes
– Ideas that system financing changes may favour economic growth
– Trying to reduce the role of the state in pension expenses financing and to slow down contribution rate and state subsidies growth.
States are not in the position to liquidate their pension systems. It is more the question of the adaptation of public pension systems through researching new compromises and redefining the role of different actors. Those adaptations are in progress in various countries and take different forms – discussions, confrontations of interests, negotiations, and in some cases conflicts. These processes, common in decision-making in modern democracies, are aimed to achieve new balance in pension systems. Choices differ from country to country and depend on their present pension system. Despite these differences, the same important aspect is common: internal capability to achieve collective security and to secure decent income in retirement.