Synthesis of pension system parametric assessment

Population aging and last decade economic circumstances are the factors the pension systems should overcome for maintaining either appropriate level of benefit amount for decent life in the developed countries or minimum subsistence allowances in developing and poor countries, hence many public pension systems worldwide are experiencing difficult economic period as its economy is in the period of financial crisis which affected to the social budget sustainability. Private pension scheme are making its low records worldwide but trying to keep necessary minimum level accrued rights for asset holders and it is clear that the asset holders, means insured people, need to wait till the stormy period of financial crisis is over. Public pension PAYG scheme with its redistribution nature is still being the main bearer of the role of the old age income security. How to keep a national public pension system sustainable? The only prescription how to do it is a periodical renovation by testing the public pension scheme on (i) soundness and effectiveness within national financial and economic system, (ii) appropriateness of its organization and administration, (iii) compliance of parameters with international standards. The listed measures allow to look into a pension system more closely and especially to the pension main indicators which play various roles in the providing of the system vitality. Being steadily studied separately, each indicator can be easily discussed and described. But when we try to synthesize multifactor analysis, then we are limited only by narrative conclusions and reports. To obtain more calculable and tangible results, and in order to make the analysis more attractive, in the research, it is applied empirical quantitative approach of econometrics as a tool that mediates between factor analysis and decision making for explaining old age security national indicators behavior. Paper is suggesting analytical system for assessing national pension system by applying new techniques of (i) the pension indicators evaluation and (ii) its values synthesis for the following indicators: existence of first public and funded pillars, inflation adjustment rules, salary growing adjustment, system adequacy and affordability, dependency ratio, length of service, retirement age.