Analysis of the insurance and facilitation of the financial sustainability of the pension system in the Republic of Moldova

Abstract

The objective of this article is to analyze the main macroeconomic aspects that directly have a major influence on ensuring the sustainability of the social protection system, including the pension system. The need to improve the financial sustainability of the pension system is required by increasing and unifying the conditions regarding the contribution period and retirement age, by increasing GDP and income from contributions and taxes, and by, by accumulating financial means in the reserve fund of state social insurance, ensuring a closer link between the state social security contributions paid and the amount of pension established for insured persons. Pension projections and the mobility of powers that are behind the foreseeable increase in pension expenditure, could meet political commitments to revise the pension system through a systemic or parametric reform of the PAYG scheme and the adjustment capacity of the selected pension indicators. The fundamental task of developing the system of social protection in the Republic of Moldova should be to improve the quality of life, welfare, and social peace. In turn, social insurance can contribute to the revival of the real economy, to the socio-economic progress of the country, as well as to the promotion of a positive image of Moldovan society at international level.