pensiilor

Pensiilor, in Romanian usage, refers to pensions—the regular income payments provided after retirement or in cases of disability or the death of a primary breadwinner. They are designed to replace part of earned income and reduce poverty risk in old age. Pensiilor systems can be public, private, or mixed.

Types include state pensions funded through public programs, occupational or private pensions provided by employers or financial institutions, and disability or survivor pensions that support dependents or individuals who cannot work.

Funding models vary: pay-as-you-go systems rely on current workers' contributions to fund current retirees, while funded schemes accumulate assets for future benefits. Benefit formulas often depend on earnings history, years of contribution, and pensionable income, with adjustments for inflation or price/wage growth.

Eligibility rules differ by country but commonly specify a retirement age, minimum contribution years, and benefit accrual methods. Many systems link benefits to national wage growth or consumer prices and have faced pressures from aging populations, debt, and changing labor markets.

Policy responses include raising retirement ages, reforming benefit calculations, expanding private saving incentives, and diversifying funding sources to improve long-term sustainability and adequacy. Debates center on intergenerational fairness, gender gaps in lifetime earnings, and the balance between public responsibility and individual choice.

See also: pension, social security, retirement planning.