The ageing population and the associated challenges of the Slovenian pension system

Miroslav Verbič

MPRA Paper from University Library of Munich, Germany

Abstract: The article presents an analysis of welfare effects in Slovenia, an analysis of supplementary pension insurance in Slovenia and an analysis of effects of the pension fund deficit on sustainability of Slovenian public finances. Stress was layed upon varying the parameters of the current Slovenian pension system and introducing mandatory supplementary pension insurance in Slovenia. It has been established that while young generations and new generations will lose from the pension reform, even complete implementation of the reform might not be sufficient to compensate unfavourable demographic developments. The volume of supplementary pension saving is insufficient at present in Slovenia to compensate the deterioration of rights from the first pension pillar. Not only is the participation in the (voluntary) second pillar insufficient, but especially the premia are too low. The level of expected deficit of the PAYG-financed state pension fund seems to be worrying, though higher activity level among the elderly would subsequently increase the volume of contributions to the first pension pillar, thus also reducing the state pension fund deficit.

Keywords: general equilibrium models; PAYG; pension system; supplementary pension saving; sustainability of public finances; Slovenia; welfare analysis (search for similar items in EconPapers)
JEL-codes: C68 D58 D91 G23 H55 J32 (search for similar items in EconPapers)
Date: 2008-04
New Economics Papers: this item is included in nep-age and nep-eec
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Related works:
Journal Article: The Ageing Population and the Associated Challenges of the Slovenian Pension System (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:10347

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