pensionisüsteemist

The pension system is a mechanism designed to provide financial support to individuals after they retire from active work. Its primary goal is to ensure a basic standard of living for the elderly and to prevent poverty in old age. Pension systems can vary significantly in structure and funding, but they generally fall into a few broad categories.

One common type is a pay-as-you-go system, where current contributions from working individuals are used to pay benefits to current retirees. This model relies on a stable or growing working population to sustain itself. Another model is a funded system, where contributions are invested over time, and the accumulated capital, along with its investment returns, is used to pay out retirement benefits. This can be done through individual accounts or collective funds.

Many countries employ a mixed system, combining elements of both pay-as-you-go and funded approaches, often with a mandatory state-run component supplemented by voluntary private or occupational pensions. The design of a pension system involves complex considerations related to demographics, economic conditions, social equity, and the sustainability of funding. Reforms to pension systems are frequently debated and implemented globally to address challenges such as aging populations, declining birth rates, and the need for long-term financial stability.