Publications - Research Papers IER SAS

The research paper presents the different modeling approaches used by countries with different pension schemes within the Ageing Working Group of the European Commission. The Economic Policy Committee mandated the Ageing Working Group to carry out the common age-related budgetary projections, to contribute to the development of the assessment of long-term sustainability of public finances. Adequacy of the pension systems is, however, less the subject of interest. In the environment of rapid population ageing, pension systems face the risk of sustainability. According to the EUROPOP forecasts, Slovakia is one of the fastest aging economies in the EU. Slovak age-related expenditures will grow at one of the highest paces among the EU countries by 2070, according to the EC 2024 Ageing Report. Together with changing demographic environment, the pension system is subject to frequent legislative changes. Due to these reasons, it becomes very important to assess the sustainability of the pension system, together with adequacy, as they represent both sides of the same coin.