Purpose: The objective of this work is to highlight the various reform measures to be undertaken in order to ensure the sustainability of general pension schemes, in particular those aimed at ...promoting the partial capitalization of pensions in Algeria.
Theoretical framework: Like most countries in the world, the Algerian pension system, which is managed on a PAYG basis, is currently facing major funding problems. Indeed, despite the measures taken to reduce its financial deficit, the latter has persisted since 2013 and has been estimated at almost 2.7 billion USD at the end of 2022. In fact, if measures to lay the foundations for sustained growth, which creates jobs (with improved inclusion in social security), are taken by the government, the system could regain its balance in the short and medium term. However, the problem of population ageing, which could occur in a few decades, reminds the urgent need for structural reforms.
Design/Methodology/Approach: The design of the study is descriptive and analytical. Data for this study were collected from official Algerian sources, namely the NRF and the NOS, while content analysis was conducted by interpreting these data.
Findings: The results of this study show that the Algerian public authorities have taken many measures in recent years to fill the deficit in the pension system, of which the repeal at the end of 2016 of the early and unconditional age pensions with possibility of maintaining the activity until the age of 65, the establishment of the NPRF in 2006, the introduction of additional revenue from customs duties applied to goods import operations from 2020, and the introduction of the NSSF in 2021. Nevertheless, this would in no way escape the insolvency of the pension scheme, hence the need for a structural reform that targets in addition to parametric changes, the introduction of a capitalization dose complementing the current pension system (supplementary pension) for its rebalancing in the short, medium and long term.
Conclusion: the availability of substantial oil revenues may downplay the importance of the financial problems facing the Algerian pension system and their impact on budget stability (according to the NRF, the fund’s deficit stood at 376 billion DZD in 2022 and could reach 1.200 billion DZD in 2030), whereas this oil boom should be used to finance the transition by adopting a partially funded pension scheme. At the same time, this would require more efforts to boost the stock market in order to create an environment conducive to the establishment and development of this funded pillar.
Financial security during retirement years is a burgeoning issue in Europe. The role of self-care is becoming more significant, by the escalating number of people joining pension funds or starting ...other savings. In the future, the role of these institutions will be even more valued due to demographic changes. The trends are clear: pensions will be a significant issue in the upcoming decades. By contrast, the level of interest exhibited by the youth remains limited regarding pension funds. The research was oriented towards to answer the following question: given the current pension system, what are the attitudes of Hungarian students/young workers aged between 18-25 – who will form the basis of the labor market in the future – towards self-care. Quantitative, questionnaire-based survey research designs were adopted to provide the attitudes, financial awareness and self-care level of students.
Social protection system had developed in order to ensure the protection of the citizens, but also to maintain the economic growth of the country. The importance of the pension system is given by its ...social purpose, which is poverty alleviation, adequacy of income and consumption smoothing at retirement. In countries of Central and Eastern Europe, the income inequalities – main cause of poverty, had increased with the economic development. The aim of this paper is to show the changes brought to Romanian public pension system by the Law no. 127/2019 regarding the provided benefits vis-à-vis of social inequalities existing among elderly people.
The COVID-19 pandemic was declared over in April 2023. Like the financial crisis of 2008, the pandemic outbreak had an exogenous shock effect on Germany's micro- and macroeconomic environment. This ...mainly affected the labor market, and after that, the Bundesregierung took measures to stabilize the labor market to prevent a dramatic increase in unemployment. The German pension system is a pay-as-you-go system that is financed on a long-term basis by demographic and economic developments. Based on these factors, projections on the effects of the COVID-19 pandemic on statutory pension insurance in Germany were already made in 2020. This paper compares the forecasts from 2020 with the actual development, combined with whether German pension insurance can be assessed as sustainable after the pandemic.
Most of the European countries are worried about the ageing phenomenon and work to improve their pensions systems and labour force. Within this research, one of our objective is to analyze and ...measure the efficiency of pension systems. For this purpose, we used several indicators referring to the adequacy and participation in the labour market in 2007-2015 period for 26 EU and applied DEA Malmquist method. The empirical results show that efficiency change remain constant only for Germany, Italy, Netherlands, Sweden and United Kingdom in 2007-2015 period. Secondly, we conducted a performance analysis and found that Portugal is the only country reporting above-average performance, followed by Romania which is presenting above-average performance in all dimensions, except for pension expenditures as % of GDP which is below-average. Low performance of pension systems was reported in Belgium, Bulgaria, Czech Republic and Malta.
"The article considers the special conditions for the implementation of the strategy for managing the financial resources of the pension system of the OECD countries and Ukraine. A strategic ...financial and economic mechanism has been developed to assess the quality of financial resources management of the country’s pension system through partial socio-economic and demographic indicators of the economic system. The method of managing the formation, distribution and use of financial resources of the state pension system is determined. The block diagram of the strategic financial and economic mechanism for the management of financial resources of the pension system within the economic and demographic indicators, as well as the parameters of state economic policy is presented. The real value of the replacement ratio per 1% of GDP and the efficiency ratio of the financial resources management of the pension system in the OECD countries and Ukraine are analyzed. The structure of investment portfolios of OECD pension funds is presented. The forecast trend of the demographic burden coefficient and the share of state funding of the pension system to GDP in the OECD countries and Ukraine are determined. The forecast trend of budget revenue and average wages is calculated. As part of the distributive approach to financing pension payments, an old-age pension payment method has been introduced, taking into account the socially acceptable level of income compensation, insurance premium rate, and demographic structure of the population, real wages and changes in social security payers."
The stability of pension fund is very important for social welfare in general and for a sustainable economic development in particular. The main purpose of this study is to analyse the perception of ...employees on the mandatory pension savings in the case of Kosovo. Examining local and international literature, the method used in this study is the online questionnaire with a sample of 300 respondents employed in the private and public sector. The collected data were processed and tested through the IBM SPSS program where the descriptive analysis, frequencies, the cross-tabulation tables, Pearson correlation and Chi-Square test are used and presented in the study. The paper concludes that employees, regardless of age, the level of education and the sector in which they work, do not have any perception related mandatory pension savings in general. The result of Chi-Square Test also proves that the variables under analysis respondents' level of education and their perception to the right of the state to compulsory pension are not related to each other. The paper comes with some others conclusions and recommendations based on research findings.
The introduction of private pension funds, which operate with the state pension fund, is the essence of the reform of the pension system in Serbia. Private pension funds are based on voluntary ...benefits. Thus, the functioning of the pension system takes place in three interconnected processes: payments to a voluntary pension fund, investment of free funds, and ultimately programmed payments – pensions. Stability in the voluntary pension funds and predictability of payments allow the quality of investment portfolio to be formed and achieve a long-term yield of investment. In this work we implement the method of least square approximation for data processing and a mathematical method of linear regression, which give a link between the observed size, in our case, the number of fund members, the average salaries in Serbia and the size of Fondex, and to be used to predict the number of fund members depending on other sizes. Based on the data obtained by approximation function we can estimate number of fund members, in dependence of average salary and size of FONDEX
The author demonstrates the assessment of the current state of the Ukrainian pension system and the analysis of the possibilities and prospects for launching the secondary (state) and development of ...the tertiary (non-state) levels of the accumulative component of the pension system of Ukraine under the conditions of the active phase of military aggression by Russia. The urgency of the work is due to the critical state of the pension system in Ukraine, which today not only cannot perform its functions regarding the pension provision of citizens in the medium and long term but is bankrupt. The research is also relevant given the repeated unsuccessful attempts to launch the state accumulative component of the pension system and reform the non-state pension provision system. This necessitates a scientific understanding of the possibilities of building an accumulative resilient element of the pension system in current conditions, which involves a clear understanding of the challenges and threats to the viability of such a system. Thanks to this, timely awareness and construction of such a model of the pension component of the accumulation system is possible, which will minimize political (low-quality state policy in this area) and material losses for the pension system participants. The purpose of the article is to analyze and evaluate the use of institutional tools to build a resilient accumulative component of the pension system of Ukraine. The novelty of the research lies in the identification of institutional mechanisms for building a resilient model for the launch of the second and transformation of the third accumulative levels of the pension system of Ukraine, which will allow for solving a complex of current and strategic issues: from reducing the burden on the Pension Fund of Ukraine in the current conditions to forming the prerequisites for obtaining a decent pension for citizens of our countries in the future. The research methodology in the article is based on the use of information from open sources, assumptions, expert opinions and assessments, the experience of building the accumulative component in different countries, etc. The choice of such a methodology is conditioned by the impact of Russia’s military aggression on all elements of life in our country, particularly the acquisition and formation of operational and reliable statistical information.
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