Politicians in Romania eventually
\nstarted to believe what experts in demography, sociologists and economists had
\nbeen saying for years, namely that the country’s pension system is put at risk
\nby the ever decreasing labour force. <\/p>\n
<\/p>\n
\n
\n
\n
\n
\n
\n
\n
<\/p>\n
Violeta Alexandru, Labour Minister
\nwith the country’s fresh liberal government has put it bluntly in an interview
\nto the local news agency Agerpres, people must be urged to save money by means
\nof the private pension system. The Labour Ministry is considering increased
\ncontributions to the so-called Pillar ll private pension funds, which Mrs.
\nAlexandru has described as a fair system reflecting the employee’s contribution
\nduring their professional activity, and a safe instrument thanks to its
\ntransparency. <\/p>\n
<\/p>\n
\n
\n
\n
\n
\n
\n
\n
<\/p>\n
Although concerned about the impact
\nof the 40% pension rise upon the budget starting September 2020, the minister
\nhas given assurances the present law endorsed by the former Social-Democratic
\ngovernment will be observed and applied by the Liberals as well. She has also recalled
\na draft law on banning former employees from cumulating wages with pension
\nbenefits. <\/p>\n
<\/p>\n
\n
\n
\n
\n
\n
<\/p>\n
However, there are some categories
\nexempted, such as teachers who can resume activity after retirement due to the
\nshortage of personnel especially in the country’s rural areas. According to
\nMinister Alexandru the government has no intention for the time being to raise
\nthe retirement age, although a suchlike trend has been increasingly visible all
\nthroughout Europe. Romania’s Central Bank has also voiced concern over the latest
\ndemographic developments. <\/p>\n
<\/p>\n
\n
\n
\n
\n
\n
<\/p>\n
In its latest report on stability,
\nthe institution has cautioned on the high migration rate among the young people
\ncorroborated with the phenomenon of population aging, which could significantly
\nbear on the future economic developments. According to the National Institute
\nfor Statistics, the number of pensioners is expected to reach 5.2 million in
\nthe second half of 2020. <\/p>\n
<\/p>\n
\n
\n
\n
\n
\n
<\/p>\n
Romania will have 4.8 million old
\npeople in 2060 and if the situation remains unchanged the number of active
\npeople contributing to pension funds, is expected to drop significantly. A
\nnational strategy aimed at promoting active aging and protecting the aging
\npopulation has also cautioned against the decreasing role of the pension system
\nas income provider both in terms of coverage and pensions level. <\/p>\n
<\/p>\n
\n
\n
\n
\n
\n
\n
\n
<\/p>\n
All in all employment for the
\nelderly must be encouraged to benefit both the employees and the country’s
\neconomy. Although the need for a prolonged active life isn’t still accepted by
\nsociety at large, there are some segments, particularly women, highly educated
\nindividuals or people in need of money who have shown a positive attitude
\ntowards this idea, the same sources have announced. <\/p>\n
\n
\n
\n
<\/p>\n
(translated by bill)<\/p>\n
\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
A decreasing birth rate together with migration is putting Romanias public pension system at risk<\/p>\n","protected":false},"author":105,"featured_media":84193,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[35029,37329,31991,35525],"coauthors":[],"class_list":["post-84192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-agerpres","tag-alexandru","tag-labour","tag-violeta"],"acf":[],"yoast_head":"\n