Evolution of Contributions Paid by Pension Participants

Abstract

The current value of the pension is a measure of the value of future pension benefit flows, being defined as the amount needed at the time of retirement to purchase an annuity that generates the same payment flows as those promised by pension schemes. The current value is expressed by a multiple of the gross annual individual earnings, the average of the current gross pension values for the OECD as a whole being around 9.6. In this paper we intend to make a series of predictions on the level of pensions that will have the current contributors to the pillar of the Romanian pension system. These forecasts will be based on a series of actuarial calculations, made on the basis of assumptions about the main elements that determine the level of pensions.

Keywords

• private pension funds
• annuity
• annual rate
• pension system