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The long-term sustainability of the public finance in the context of population ageing is becoming a hot topic in most of the European countries including the Czech Republic. Moreover the Czech population will be one of the oldest in the world according to the forecasts of different institutions (UN, OECD, etc.). It poses challenge for the Czech pension security scheme. This paper presents possible scenarios of the future development & illustrates future fiscal impacts of the ageing assuming a preservation of the current Czech pension security scheme in the period up to 2050. The analysis is based on a detailed one-year age structure. This allows us to simulate the influence of the changes in component parameters of the current scheme on its future situation (for example, changes in retirement age limits). The main conclusion is that there is a rather small impact of these parameters changes on the expected future imbalance of the Czech pension system. Therefore a more fundamental reform of the current pension system should be considered. Tables, Graphs, References. Adapted from the source document.

This essay focuses on the pension system & highlights some of its key elements. The first part deals with the economic principles connected with the social security system. Eatwell's model is utilized to give some basic intuition of terms & concepts used in the pension reform discussion. The second part classifies pension systems from different perspectives & discusses some of the factors relevant for the Czech reform effort. The last part brings the main arguments of the pay-as-you-go supporters that seem to be missing in the current Czech debate. The aim of the authors is to show that a pension reform is a rather complex problem where no fast, simple & impartial view solutions exist. Rather than giving any particular recommendations, the authors try to stimulate the current pension reform debate by stating some controversial issues. References. Adapted from the source document.