Necessity of introduction of pension disability insurance reform

Tatjana Piljan,Ivan Piljan,Marija Lukić

doi:10.5937/intrev1901082p

Abstract

Life is a natural course, full of the uncertainty and temptation of every human being. In order to make our lives peaceful and have a peaceful future, we try to provide various ways to ensure that we make our lives safer. The pension insurance system is very important for every country from a social, economic and financial point of view. Pensions are primarily a social category because they represent the income of people who are unable to earn a living due to age or illness and as such reflect the social function of the state. In most of the transition countries, reforming processes in the field of pension insurance have been initiated or are under way in order to establish a sustainable functioning model. In Serbia, in the period from 2001 to 2016, attempts were made to reform the pension insurance system in order to solve the inherited unfavorable situation, but still without significant effects. An integral part of the paper is the results of the research conducted with the aim of obtaining the attitude of Belgrade residents about the existing mandatory pension insurance and trust in the same, as well as the view on the need to take additional measures and activities in order to realize a comprehensive reform in the field of pension insurance. Starting from the established goal of the research, it can be concluded that the hypothesis was established that the inhabitants of Belgrade are not satisfied with the existing situation in the pension insurance system, that they consider the pension fund to be vacant and that as such it does not guarantee safe pensions. This indicates that additional measures and activities of the competent state authorities and institutions should be undertaken in the forthcoming period in order to fully implement the projected reform goals in the field of pension insurance.

Highlights

The pension system is very important for every country from a social, economic and financial point of view
Pensions are above all a social category because they represent the income of people who are unable, due to sickness or age, to earn a living and who need state care, and as such, pensions are part of the social security system, which is the most significant form of social insurance
This paper aims to draw attention to the current situation as well as to propose potential solutions that would make the pension system stable and sustainable over the long run, as well as to stress the importance of life insurance in securing material security in old age

Summary

INTRODUCTION

The pension system is very important for every country from a social, economic and financial point of view. Developed European countries have no such problem, as their citizens, along with compulsory retirement, have some kind of voluntary insurance that guarantees them material security in their old age In these countries, employers have a legal obligation to provide pensions to workers. In Serbia, an important way of organizing insurance, which is otherwise widely used in developed countries, is neglected It is well-known that non-profit mutual insurance companies largely provide insurance that has a social function (pension, health, insurance and old age care). In the current reform of Serbia, it has been decided that the pension system relies on two components: the current financing of pensions (PAYG) organized within the state fund (1st pillar), to the development of voluntary old-age savings in private pension funds (3rd pillar). It should be especially emphasized that other measurement units, other than frequency, are not considered for data processing using the Chi-square test

Top Management

Secondary

Findings

CONCLUSION