Risks covered by pension systems and the possibility of individual saving for old age

Expectations regarding the extent of the risks covered by the pension schemes are often unrealistic. The causes varied - in general, we can conclude that their origin lies in the historical-social, socio-economic, but also political consequences. In the paper, we evaluate the demographic risks contributing to the current pressure on the pension systems. Among these risks, we included the increase in average life expectancy and caused changes in population ratios and longevity risk. In the analysis, we use data from the Czech Republic and the Slovak Republic and our results pointing to possible solutions of the sustainability of pension systems on the example of selected countries. Possible solution also brings the initiative of the European Commission by greater involvement of individuals in their financial stability for retirement age. We stress the need for multiple sources coverage, i.e. coverage by the combination of public insurance and private insurance schemes with the active participation of individuals. By this assumption, the risk coverage expands and touches the entire financial market.