Draft of the regional pension scheme functioning simulated in the Czech Republic

Abstract

The article discusses the issue of retirement security of citizens in advanced age. It deals with the possibility of covering all inhabitants in the region. The analyzed solution is independent of the central state pension scheme, usually implemented in the first pension pillar.Due to the difficult changing of the pension scheme as a whole, the possibilities of the regional pension scheme are described and analyzed by the real conditions in the Czech Republic.Based on the analyses, possible roles of the region and opportunities in it have been defined while ensuring seniors. The result is the defining of the conditions for the public pension fund to function, where the second pillar pension scheme seems optimal.A specific solution also contains an actuarial model of the functioning of the regional pension fund. Under certain conditions, it is possible that the fund development and the pension that a pensioner earned fulfulling the set conditions is considered. Due to the limitations of a regular, predictable income, we can consider the simulated allowances as the lowest income possible.