How to reduce pension system deficits of PAYG pension system in Slovakia?

As many population forecasts predicted in the upcoming decades demographic transition in Slovakia will lead to inevitable population ageing. This is already approved by the actual development in many west-European countries. Increasing share of older population groups will affect the number of pensioners depending on the pension systems - both private and publicly financed. Focus of this paper will be given to pressures on PAYG(3) pillar of Slovak pension system that is governed by public social insurance company stemming from increased number of pensioners. Thus we will not be modeling effects on the second pillar of Slovak pension system. Aim of this paper is to discuss possible ways of mitigating the increased claims from persons in pension age.