Financial Sustainability and the Wellbeing of the Elder Romanian Population Using Pension Modelling

Abstract

The system of pensions is a very important part of the society, and due to increased ageing of population, life expectancy, healthy life years, and reduced fertility rate, the financial sustainability will be a global problem in the next future. The goal of this chapter is to analyse the social and economic factors impact on pensions and financial sustainability and propose some measures to improve well-being of elder Romanian population based on technology modelling. Using mathematical modelling, the R square indicated that 99.47% of the evolution of variable pension (Y) is explained by the evolution of social factors (X1-X7) and that 99.98% is explained by the evolution of economic factors (X8-X14). The correlations between variables and covariance are indicating an influence which is affecting the stability of the pension fund and financial sustainability. Using technology modelling, the specialists could find future sustainable solutions for the pension system and to improve well-being for elder Romanian pension population.