Optimizimi i parametrave të sistemit të pensioneve. Aspekti i drejtësisë midis brezave
Optimization of Pension System Parameters: The Aspect of Intergenerational Equity

Summary/Abstract: The shift in the demografic structure, as a result of falling birth rates and an increase in the life expectancy, has put under strain the financial balance of public pension systems in many European Countries. Demographic and economic developments affect especially the countries that use a bismarckian PAYGO pension scheme. These problems lead to the need for reforms in order to maintain the pension system sustainable. New options are introduced to ensure income security in old age. Hence, private pensions may serve as a supplement to public pensions. How good are these alternatives for Albania? Albania is considered a country with a young population and the population is aging less rapidly. Instead of redesigning the Albanian Pension System, this article proposes a parametric reform. The question raised in this presentation is whether to improve or to privatize public pensions? The main goal of the article is to introduce a theoretical model in order to configurate the three main parameters of public pensions; contribution rate, replacement rate and dependency ratio. This model will be developed under the consideration of the intergenerational equity, in order to provide fairness in relationships between generations.

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