A possible pension reform and its reasons

What is it about?

Reform of pension systems is in the focus of interest all over the world. It seems that the sustainability of the pay-as-you-go system that has become the most widespread type of pension systems having major share for several rasons - is in its present form problematic in most countries of the world. Its reform induces debates on several fora (e.g. the streets) in many countries and international organisations. The Hungarian pension system has changed significantly in the recent decade (in our view positively), but despite the considerable moves to reform we cannot speak about a completed process, or about a system sustainable in the long run, among the elements of which consistency exists. Thus - according to our opinion - the further reform of the system (or of its certain elements) is indispensable. Professionals, however, disagree on the steps to be taken, and even more problematically: decision-makers seem not to realise the necessity of further changes, regarding the pension system as one set temporarily stable by the 1990s reforms, thus ignoring not just the need to continue reforms, but also the debate on the topic. We disagree with this approach. The study intends to sketch a possible long-distance model of the Hungarian pension system, and the way leading to it.

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Why is it important?

Pay-as-you-go pension systems is in crisys all over the World.

Perspectives