Public Pension Systems’ Financial Sustainability in Central and Eastern European Countries

Abstract

AbstractIn the context of demographic aspects revealed by decreasing the birth rate, diminishing the active population average, life expectancy increases, and population aging trend, the public pension systems are confronting the financial sustainability gaps. Moreover, globalization and the free movement of people around the world can lead to several divergencies regarding the assurance of citizens’ social protection at the international level. Regarding these issues, Central and Eastern European countries are subject to the assessment of a fundamental reconstruction and settlement shift towards avoiding financial failure. In this chapter, we have conducted an empirical study towards modeling the financial sustainability of pension systems in Central and Eastern Europe. In this sense, we have created a panel data model in which the financial sustainability of pension systems in five Central and Eastern European countries has been tested. The conclusion of this chapter which is highlighted by the empirical testing results reveals the need for a structural change in the structure of pension systems in Central and Eastern European countries by tackling some important financial, legal, and social reforms.KeywordsFinancial sustainabilitySocial protectionEmploymentPension reformsDescriptive data