CAUSES ANALYSIS OF THE DEFICIENT PUBLIC PENSION SYSTEM IN ROMANIA

Abstract

The corrections frequent in the public pension system have not removed the imbalances that accumulate in the allocation of resources among different generations in the same generation. State deficits accumulated deficit explicit and implicit public pension system that otherwise not calculated, thus transferring the financial burden on future generations, without giving a proper solution even for the present. Financial deficits are not the result solely of the dependency and emigration, but the account of how the scheme works- pay-as- you-go. Pension schemes pay-as-you-go, based on solidarity between generations, are facing increasing in providing decent pensions. This is largely due to the decrease in the number of taxpayers and increase the number of pensioners while aging population with declining birth rates, increased life expectancy, early retirements. If personal savings of individuals would be sufficient to ensure an adequate income in retirement, it would not be necessary plans. Anyway, for a large part of the population is difficult to save due to low incomes, unemployment, inflation and uncertainty about the rate of return on different investments. Even with the existence of a public pension system, when there is a dramatic reduction in retirement income, without, however, as the costs to diminish. As a result, the standard of life that each of us typically is difficult, if not impossible, to maintain. Today in Romania, each taxpayer maintains more than one retiree, this report will come as a taxpayer to maintain more than 2-3 retired by 2050.

Keywords

• causes
• public pension
• deficient
• system