Note on the Sustainability of the Pay-As-You-Go Pension Scheme in the Context of Population Ageing in the Czech Republic

Janíčko, Martin; Tsharakyan, Ashot

doi:10.18267/j.polek.900

Cited by 4 publications

(1 citation statement)

References 13 publications

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“…As such, the reform followed similar changes undertaken in most neighbouring Central-Eastern European countries (Schneider, 2011). However, the core of the reform consisting of a new second pillar solution gradually began to attract criticism from political opposition and spurred critical discussion among academia (Vostatek, 2012;Loužek, 2014;Krebs, 2013;Janíčko and Tsharakyan, 2013), prompting its deposition by the new government in 2016. On the contrary, substantial changes implemented in the third pillar were mostly not reflected in the public and scholarly discourse, which is rather surprising, given the system's massive prevalence among the Czech population.…”

Section: Introductionmentioning

confidence: 99%

Does an Attractive Pension Product Design Sell by Itself? The Experience of the Czech Republic.

Šindelář¹,

Erben²

2018

AOP

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This paper deals with the experience of third pillar reform in the Czech Republic, executed in 2013. The core of our study is formed by a comparative analysis of newly introduced supplementary pension savings and its substitute products (investment funds, life insurance) from two main aspects: product features and distribution features. The outcomes are supported by empirical sales and population penetration of the surveyed products. The results indicate that even a pension product with a very attractive product design, such as supplementary pension savings, will be hampered by its substitutes as long as its distribution features are unattractive. This is an important lesson, particularly for the discussed European solution, the pan-European portable pension product (PEPP).

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Section: Introductionmentioning

confidence: 99%

Does an Attractive Pension Product Design Sell by Itself? The Experience of the Czech Republic.

Šindelář¹,

Erben²

2018

AOP

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Pension Liabilities to Ageing Population of the Czech Republic

Šimková¹,

Sixta²,

Langhamrová³

2016

Politicka ekonomie

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Pension Liabilities to Ageing Population of the Czech RepublicThe problem of population ageing and related questions of sustainability of the pension system in the Czech Republic represent serious and discussed topics. Pension and health care systems are significantly influenced by the changes in the population structure. There is a disproportion between paid retirement pensions and received pension contributions in the pension system. The problem lies in the proportion of economically active and inactive population and the possibility of our economy to ensure sufficient resources in the future. Pensioners will consume real goods and services and have the unquestionable right for satisfaction of all their needs. For the economy, it is not important if these needs are satisfied through public or private funds or if there is a system based on contributions or benefits. Our paper offers an economic view of ageing population from the perspective of the estimate of pension liabilities. The paper also shows that the influence of the choice of the system is not important in terms of the economy. Of course, it is important for each of individuals. The problem is connected with equity, solidarity and efficiency of the management of funds. Regardless of the system, liabilities to people in the retirement are equal. Although these estimates are based on various assumptions that may vary over time, the total value of pension entitlements represents key information for policy makers. Thus the estimated proportion of pension liabilities to GDP reflects the amount of output that will be needed to satisfy the needs of current and future retirees.Keywords: aging of population, economic burden, pension system, pension entitlements JEL Classification: C02, E06, J01 ÚvodDemografické změny související se stárnutím populace patří v současnosti mezi jednu z nejzávažnějších a velmi diskutovaných společenských otázek nejen v České republice. Jde především o otázku penzijního systému, kdy klíčovým rizikem je rostoucí disproporce mezi vyplácenými starobními důchody a přijatými příspěvky na důchodové pojiš-tění. Jde o obecný problém vzhledem k tomu, že financování z veřejných zdrojů je v řadě zemí EU nejdůležitějším zdrojem financování služeb dlouhodobé péče.Stárnutí populace představuje mediálně velmi oblíbené téma, které bývá někdy zavá-dějícím způsobem prezentováno a bývá také doplněno o nedostatečně odborně podložený komentář často akcentující zájmy jednotlivých ekonomických nebo politických uskupení. Nesprávně je kladen akcent na zatížení samotného důchodového systému a na hypotetickou otázku, zda bude mít stát dostatek prostředků na výplatu starobních penzí. Jen malý prostor obvykle získávají odborné posudky současné situace a návrhy prakticky 1 Martina Šimková, Jaroslav Sixta, Jitka Langhamrová (martina.simkova@vse.cz, sixta@vse.cz, langhamj@vse.cz), Vysoká škola ekonomická v Praze.

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Long-term Sustainability of Pension Systems of European Union Countries

Lakotová¹

2021

Politicka ekonomie

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Long-term Sustainability of Pension Systems of European Union Countries The article analyses the relationship between population ageing and sustainability of the EU countries' pension systems, and assesses how this relationship is affected by pension system design and parameters. The findings show that there is a link between population ageing and unsustainability of pension systems; however, there are exceptions in both directions. Despite the significant problem of population ageing, pension systems of some countries are found to be sustainable and vice versa. The elements enhancing sustainability are, for example, hypothetical defined contribution accounts or linking the pension benefit or retirement age to demographic changes. The article also analyses the relative significance of population ageing determinants. Life expectancy appears to be the most significant determinant of population ageing.

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Note on the Sustainability of the Pay-As-You-Go Pension Scheme in the Context of Population Ageing in the Czech Republic

Cited by 4 publications

References 13 publications

Does an Attractive Pension Product Design Sell by Itself? The Experience of the Czech Republic.

Does an Attractive Pension Product Design Sell by Itself? The Experience of the Czech Republic.

Pension Liabilities to Ageing Population of the Czech Republic

Long-term Sustainability of Pension Systems of European Union Countries

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