Optimal Structure of Pension System and Its Influence on the Social Policy of State Budget

9 Pages Posted: 14 Aug 2019

See all articles by Marina Tabatadze

Marina Tabatadze

Ivane Javakhishvili Tbilisi State University (TSU)

Date Written: June 30, 2019

Abstract

The world is witnessing an important increase in number of elderly people. This process is accompanied by the increase of the proposition of working and retired population, which has significant economic, social and political implications. To answer these challenges, the governments across the world engaged in comprehensive reforms of social policies, out of which the reform of pension system is the most important. The presented research aims to determine the main directions of pension reforms undertook by different countries. More precisely, the objective is to identify the trends characterizing reforms in developing countries and compare them to the tendencies observed in the reforms of developing economies. Therefore, the aim of research is to get generalized results, which will contribute greatly to the existing scientific literature and will be useful in the process of perfecting and improving the current pension reform. To do so, the paper studies reforms together with the existing scientific literature and public reports issued by international organizations. The results of the study suggest that the most common pension system across the globe implies introduction of the accumulated pension model (Defined Contribution Plan) instead of solidarity pension scheme (Defined Benefit Plan). This is a radical change impacting country’s economy, social and cultural norms and legislation. The reason behind the reform was the limitation of the existing model, but also the demographic trend of aging the population.

Keywords: pension reforms, retirement, public policy, state budget, Defined Contribution Plan

Suggested Citation

Tabatadze, Marina, Optimal Structure of Pension System and Its Influence on the Social Policy of State Budget (June 30, 2019). RAIS Conference Proceedings - The 13th International RAIS Conference on Social Sciences and Humanities. Available at SSRN: https://ssrn.com/abstract=3433955 or http://dx.doi.org/10.2139/ssrn.3433955

Marina Tabatadze (Contact Author)

Ivane Javakhishvili Tbilisi State University (TSU) ( email )

1, Chavchavdze Ave
Building I
Tbilisi, 0218
Georgia

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