Assessing Sustainability of the PAYG Pension System in the Czech Republic and the Effect of Automatic Balance Mechanism
| Autor: | Bc. Lukáš Pokorný |
|---|---|
| Rok: | 2022 - zimní |
| Vedoucí: | doc. Petr Janský Ph.D. |
| Konzultant: | |
| Typ práce: | Bakalářská |
| Jazyk: | Anglicky |
| Stránky: | 62 |
| Ocenění: | |
| Odkaz: | https://dspace.cuni.cz/handle/20.500.11956/171279 |
| Abstrakt: | The financial sustainability of pension systems facing the ageing population is subject to extensive discussion by researchers. This thesis aims to assess the financial sustainability of the Czech PAYG pension system and then to design the Automatic Balance Mechanism (ABM), which is a recently developed strategy to restore the sustainability of the PAYG pension systems, which has not been introduced to the Czech pension system yet, according to the author’s knowledge. The ABM reside in the calculation of the future course of three key variables, the contribution rate, the age of retirement and the indexation of pensions while ensuring financial sustainability and the liquidity of the pension system for all years of the study. As the results show, without applying the ABM rules, the Czech pension system does not seem to be sustainable in the period of 25 years. |
