WB predicts problems for Moldova’s pension system
The World Bank (WB) predicts that Moldova and other countries of Europe and Central Asia will have big problems in their pension system. Under the influence of the global financial and economic crisis the pension deficit may be tripled and the population's precipitous aging will only aggravate the situation.
Such forecast is presented in the World Bank's report "Pensions in Crisis"
In the WB analysts' opinion, policies, aimed at solving short-term financial problems may considerably aggravate the situation in the long outlook. They insistently recommend not recurring to such policies very often.
In their opinion, the financial crisis is not the problem of the region. The demographic crisis look more serious in virtue of the population's inevitable ageing.
For this reason the upcoming deficit in the pension systems may exceed three times the current forecasts and preserve this level during the successive 20 years. Analysts recommend applying the inflation indexation of pensions, to raise the pension age, to equalize men and women, as well as to investigate the cases of the retirement ahead of time.
The World Bank (WB) offers to develop the insurance of pension systems against the instability of financial markets.
The report says that these countries have already begun studying various measures for combating a deficit in pension systems.
There are over 600 thousand beneficiaries of the pension fund; 540 thousand of them on the basis of old age. The number of pensioners grow yearly on the average by 2%. The pension age for men is 62 years, for women - 57. The average size of the old age pension accounts for 665 lei ($58).
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