COMPARATIVE ANALYSIS OF LONG-TERM SUSTAINABILITY OF EU PENSION SYSTEMS: SOME IMPLICATIONS FOR CZECH REPUBLIC

This paper deals with the long-term sustainability of pension systems in EU countries with special focus on the position of the Czech Republic. First, brief description of pension systems using different combination of pillars in individual EU countries is presented serving as a background for further analysis. The evaluation of a synthetic S2 indicator is analysed within the context of population ageing phenomenon characterized by the old -age dependency ratio. Moreover, the indicators of public pension expenditure ratios and gross replacement rates are taken into account. The design of pension systems in EU countries is then analysed, with respect to these factors. The findings show, that there obviously exists a link between population ageing and unsustainability of pension systems, however, there are exceptions in both directions. In spite of relatively favourable demographic projections, there may be found pension systems assessed as unsustainable in the EU area. On the other hand, it is obvious that some European countries will be able to cope with the demographic challenge successfully. This analysis may serve not only as a tool, how to explore experience from other EU countries to make domestic pension system more resilient, but also as a warning which ways should not be followed.