Theoretical and Applied Economics
No. 4 / 2019 (621), Winter
An analyses model of the Romanian privately managed pension system
Bucharest University of Economic Studies, Romania
Abstract. The Romanian privately managed pension system (Pillar II) is a system financed though the allocation towards the privately managed pension funds of a certain percentage from the contributions due by the participants to the public social insurance system. The main advantage of the system is represented by the fact that the amounts received by the pension funds will be better used, being invested by the pension management companies, which will ensure that he amounts saved by the participants will increase on the long run. Pillar II is compulsory for employees under 35 years old and optional for those between 35 and 45 years old, at the moment of enrolment. By contributing month after month until retirement, assets will be accumulated and will be multiplied through investments, ensuring a supplementary pension beside the public system one. The pension management companies are only authorized companies, in that way the investments will be made in a professional environment, towards profitable areas, ensuring the accumulated assets profitability. The number of participants at Pillar II is increasing since the inception of the system and this trend will continue at least on medium term. From the start of the system to the moment of the first pension payments, there were and there will only be a small number of participants, which received or will receive the assets accumulated in their accounts. Until the first participants enrolled will reach the legal retirement age, the amounts in their accounts will continue to grow, while efficiently invested, will offer a guarantee for a higher supplementary pension.
Contents
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Business R&D investments in the EU: Main dynamics and economic effects
Volatility experience of major world stock markets
Unemployment hysteresis analysis for OECD countries
Culture as a driving factor for foreign direct investments in the Western Development Region of Romania
A Deep Neural Network (DNN) based classification model in application to loan default prediction
The new Keynesian Phillips Curve. Implications. Strengths and weaknesses
Corporate ownership structure and performance: An enquiry into India
Turkey’s macroeconomic policy challenges in the aftermath of the 2018 crisis: A sectoral financial balances analysis
Main aspects on the nature of dynamic models
An analyses model of the Romanian privately managed pension system
Dynamic models used in analysis capital and population
Poverty rate determinants in the Central and Eastern Europe member states
Wagner versus Keynesian Hypothesis: Role of aggregate and disaggregate expenditure in Pakistan
GARCH based VaR estimation: An empirical evidence from BRICS stock markets
Does FDI substitute exports of home country? A case of US FDI in select Asian economies
Exploring the role of institutions in cross country Malmquist productivity analysis: A two-stage double bootstrap DEA approach
Does the Mundell-Fleming Model apply to Poland?
The validity of Okun’s Law: Evidences from Indian economy