Model of the financing of pensions in the repartition system

In the article there is carried out a detailed analysis of the model of the pension system whose action is based on an intergeneration agreement. The repartition system is the most widespread type of pension system in the world. However at a time of intensification of the process of ageing of the population its effectiveness violently decreases, despite the fact that still in the eighties of our century it generated a financial surplus. The appearing dangers which destroy the financial equilibrium of the repartition system force the governments of many countries to undertake decisive actions with the purpose of the gradual or complete elimination of the existing inefficient system in favour of the system capitalizing the contribution. An example are the reforms of the Polish and Chilean system. Considering the very high obligations of the hitherto existing system a radical reform is not possible because it entails too high costs. Therefore it is worth analyzing all the causes of the repartition system and investigating the possibilities of counteracting it within the framework of this system. For this purpose an analytical model of the system was built based on the intergeneration agreement, on the basis of which a simulation analysis was carried out.