ühispensionisüsteem

ühispensionisüsteem refers to a mandatory funded pension system common in many countries. In such a system, a portion of an individual's earnings is deducted and contributed to a personal pension account. These contributions are then invested by pension funds with the aim of generating returns over the individual's working life. The accumulated capital, along with investment gains, forms the basis for the pension payments received during retirement. The principle behind a funded system is that current contributions fund future pensions, creating a pool of assets that grows over time. This differs from a pay-as-you-go system where current contributions from active workers are used to pay the pensions of current retirees. The structure of ühispensionisüsteem can vary significantly, including details on contribution rates, investment options, retirement ages, and the management of pension funds. The goal is generally to ensure financial security for individuals in their old age and to reduce the burden on the state social security system. Public and private entities often play a role in the administration and regulation of these systems to ensure their stability and effectiveness.