The paper discusses conceptual background of the pension system from the viewpoint of its long-term objective, which is to ensure intergenerational equilibrium irrespective of the demographic situation. This requires stabilisation of the share of GDP allocated to the entire retired generation. Traditional pension systems aim, instead, at stabilisation of the share of GDP per retiree. The change in demographic structure led to severe fiscal problems and negative externalities for growth. The new pension system in Poland allows to reduce pension expenditure (as a percent of GDP), instead of increasing it � as is projected for the majority of other OECD countries. |
