This paper analyzes the far-reaching changes on social plane caused by aging
population which endanger social security for old people, especially in times
of global economic crisis and major changes in the labor market. A special
emphasis is given to the economic unsustainability of the pension system in
Serbia, where the ratio of the aging population and the working population is
very unfavorable, and where high unemployment and weak economic growth
threaten an aging population and increase the poverty. The analysis shows
that pensions in Serbia in recent years have a real decline, and their
relation to average earnings is still unfavorable despite large subsidies
from the state budget which last years covers about 50 % of the expenditure
for pensions. The second part of the paper discusses the advantages and
disadvantages of PAYG (pay as you go) pension system and private pension
insurance. The advantage of PAYG pension system is that it protects the
retired persons' savings which would not be lost due to extraordinary market
circumstances, such as wars, high inflation, etc. This system avoids the risk
of a failed investment opportunities, which is the biggest weakness of
private pension funds. In addition, the population trust this system
believing that the government will not allow them to live in poverty when
they get old. The key advantage of the private pension system is that this
system realizes the economic function of pensions, because contributions paid
are saving for their old age. Also, the placement of pension contributions to
the capital market increase the return on investment and total government
savings, which contribute to higher economic growth. Advantages of one
pension system are actually weaknesses of another. Since the system "pay as
you go" has proved ineffective to provide pension funding for the elderly
population, which is increasing due to longer life expectancy, and its
relationship to the working population is more unfavorable, it is necessary
to introduce the pension reform, which has already more or less successfully
implemented in many countries of the world. Globalization and especially the
global economic crisis have made this issue particularly urgent. Finally, it
is noted that the pension reform in Serbia should not just include leaving
the system "pay as you go" and a gradual transition to a private pension
plan. Also, it is necessary to implement the long overdue economic reforms to
achieve significant long-term economic growth, because only higher economic
growth can create the material conditions for desired changes in the pension
system.
Wpływ światowego kryzysu gospodarczego na brazylijski i meksykański przemysł samochodowy
