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Optimal Structure of Pension System and Its Influence on the Social Policy of State Budget

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  • Marina Tabatadze

    (Ivane Javakhishvili Tbilisi State University, Georgia)

Abstract

The world is witnessing an important increase in number of elderly people. This process is accompanied by the increase of the proposition of working and retired population, which has significant economic, social and political implications. To answer these challenges, the governments across the world engaged in comprehensive reforms of social policies, out of which the reform of pension system is the most important. The presented research aims to determine the main directions of pension reforms undertook by different countries. More precisely, the objective is to identify the trends characterizing reforms in developing countries and compare them to the tendencies observed in the reforms of developing economies. Therefore, the aim of research is to get generalized results, which will contribute greatly to the existing scientific literature and will be useful in the process of perfecting and improving the current pension reform. To do so, the paper studies reforms together with the existing scientific literature and public reports issued by international organizations. The results of the study suggest that the most common pension system across the globe implies introduction of the accumulated pension model (Defined Contribution Plan) instead of solidarity pension scheme (Defined Benefit Plan). This is a radical change impacting country’s economy, social and cultural norms and legislation. The reason behind the reform was the limitation of the existing model, but also the demographic trend of aging the population.

Suggested Citation

  • Marina Tabatadze, 2019. "Optimal Structure of Pension System and Its Influence on the Social Policy of State Budget," Proceedings of the 13th International RAIS Conference, June 10-11, 2019 03 MT, Research Association for Interdisciplinary Studies.
  • Handle: RePEc:smo:dpaper:03mt
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    References listed on IDEAS

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    2. Cipriani, Giam Pietro, 2018. "Aging, Retirement, And Pay-As-You-Go Pensions," Macroeconomic Dynamics, Cambridge University Press, vol. 22(5), pages 1173-1183, July.
    3. Didier Blanchet & Antoine Bozio & Simon Rabaté, 2016. "Quelles options pour réduire la dépendance à la croissance du système de retraite français ?," Revue économique, Presses de Sciences-Po, vol. 67(4), pages 879-911.
    4. Arnberg, S�ren & Barslund, Mikkel, 2014. "The Crowding-out Effect of Mandatory Labour Market Pension Schemes on Private Savings: Evidence from renters in Denmark," CEPS Papers 8911, Centre for European Policy Studies.
    5. Alexander Schwan & Etienne Sail, 2013. "Assessing the economic and budgetary impact of linking retirement ages and pension benefits to increases in longevity," European Economy - Economic Papers 2008 - 2015 512, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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    More about this item

    Keywords

    Pension reforms; retirement; public policy; state budget; Defined Contribution Plan;
    All these keywords.

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