Wake-up call: Annual government expenditures for pensions system, over 10bln
The paper reviews the precarious situation of the public pension system and admits that the private pension plan has been introduced in Romania at an “inordinately long delay” compared to other countries in the CEE and Western Europe.
The study was authored by a team of experts from the Presidential Commission of Social and Demographic Risk Assessment that gathers 23 experts in social policy, social assistance, demography, social statistics and adjacent sectors.
Public pension expenditure in Romania stands at €10bln euros , namely over 9% of Gross Domestic Product and over 26% of general consolidated budget’s total expenditures, outpacing all other categories of primary government expenditure.
“The report of the commission found that Romania is sitting on a ticking time bomb, and that is the public pension plan. We are dealing with the most unfavorable situation in Europe, bearing the risk of becoming more acute in terms of workers-to-pensioners ratio within only 20 years. Of course, the question is: what’s to be done? It is our duty to admit that the private pension plan Romania introduced 2-3 years ago is a part of the solution to the pension crisis”, Crinu Andanut, chairman of APAPR commented.
The study was authored by a team of experts from the Presidential Commission of Social and Demographic Risk Assessment that gathers 23 experts in social policy, social assistance, demography, social statistics and adjacent sectors.
Public pension expenditure in Romania stands at €10bln euros , namely over 9% of Gross Domestic Product and over 26% of general consolidated budget’s total expenditures, outpacing all other categories of primary government expenditure.
“The report of the commission found that Romania is sitting on a ticking time bomb, and that is the public pension plan. We are dealing with the most unfavorable situation in Europe, bearing the risk of becoming more acute in terms of workers-to-pensioners ratio within only 20 years. Of course, the question is: what’s to be done? It is our duty to admit that the private pension plan Romania introduced 2-3 years ago is a part of the solution to the pension crisis”, Crinu Andanut, chairman of APAPR commented.