Economic Transition Countries Index Analysis Of Pension Insurance

Pension insurance is an important element of social security related to economicdevelopment and overall stability. The so-called old-age insurance is a state and societyaccording to certain laws and regulations, established to resolve the boundaries ofworking-age workers to meet the state to terminate the labor obligations, or due to old age,loss of the ability to work out the basic living labor jobs social insurance system. EasternEuropean countries have experienced political upheavals,from a highly centralizedplanned economy to a market economy,the pension system in the market economy cannotadapt to the original context of the socialist planned economy system.And EasternEuropean countries have entered the aging society,the fastest growing age of thepopulation is in the Eastern European countries in the next20years(from2010).On theone hand,there have more and more elderly population,on the other hand,the extend oflife expectancy,in older to solve these problems,Eastern European countries focus onold—age pension reform.China also is a planned economy to a market economycountry,did not reach the economic level of developed countries,there have been featuresof the aging population,especially it will reach the peak of aging population after2030,coupled with China’s urban-rural dual economic structure,making the old—age insurancecoverage is very small. Obviously,studying the causes and characteristics of pensionreform in Eastern Europe countries,It will provide a reference to our country.This article focuses on index analysis to clarify the basic principles of the economiesin transition to old-age insurance, the key indicators and the main factors, indicating thatthe economies in transition need to select the mixed system of pension insurance, andrecommendations for their improvement on the old-age insurance some of the currentindex value.This paper gives an overview of demographic trends and their impact on publicfinances in transition countries. It also describes the pension reforms that have been carriedout and the impact of multi-pillar pension reforms on capital market developments. Weshow that the transition countries face more severe demographic pressures thancomparable emerging market economies. Their government finances therefore have tocope with a rising strain on public social security systems. We argue that multi-pillarpension reform is not a cure-all for this problem. Multi-pillar systems are costly tointroduce, as pension contributions previously used to finance the public pension liabilitiesare diverted to the funded pillars. They also change the risk-profile of the pension schemes,as the intergenerational risk-sharing of the public system is replaced by risk-sharingthrough financial markets. Parametric reform to public pension systems continues to be a viable policy alternative. The necessity of parametric reforms is underscored by data onasset allocations of mandatory pension funds in the transition countries, showing thatlimited diversification of assets can undermine the actual impact of multi-pillar reform onfiscal sustainability.