APPLICATION OF THE LIFECYCLE THEORY IN SLOVAK PENSION SYSTEM

• Authors: Balco Matej , Šebo Ján , Mešťan Michal , Šebová Ľubica
• Languages of publication: EN

Abstracts

EN

In the wake of population ageing and increasing public pension liabilities, many countries have reformed their pension systems, moving away (at least partially) from defined benefit (DB) pension schemes and towards defined contribution (DC) pension schemes. Slovakia’s reformed its pension system into two main pillars – I. pillar PAYG scheme and II. pillar DC scheme. Slovak pension reform brings up a lot of questions regarding the optimality of two main pillars pension system set up. In this paper, we seek to investigate the effects of different Slovak pension system set up alternatives and their implications on lifecycle savings and individual welfare using own stochastic life cycle model of partial equilibrium. Results could serve as a basis for further discussion on improving the legislature on parameters’ set-up of both pension pillars in Slovakia as well as abroad.

Keywords

EN

PENSION SYSTEM; LIFE CYCLE THEORY; RETIREMENT; INDIVIDUAL WELFARE; SLOVAKIA

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2018
• Volume: 66
• Issue: 1
• Pages: 64 – 80

Contributors

author

Balco Matej

• Matej Bel University in Banská Bystrica, Faculty of Economics, Department of Public Economics and Regional Development, Tajovského 10, 975 90 Banská Bystrica, Slovak Republic

author

Šebo Ján

author

Mešťan Michal

author

Šebová Ľubica