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Catalin Pauna, World Bank: Romania has the weakest contributor-beneficiary report for pensions
Catalin Pauna, senior economist at World Bank Office in Romania, declared on Tuesday that Romania has the weakest beneficiary-contributor to the public pension system at European level. The solution could be saving and participating in private pension funds.
In the opinion of the World Bank representative, the solution is that active people in the labour market should contribute to private pension funds and use at the same time saving banking products.
“At present the ration between beneficiary and contributor is one to one, the lowest in Europe. Italy is before us, with two contributors for one beneficiary. It is clear that public pensions are small and will remain small in many countries, especially because of the ageing population and the unfavorable ratio between the number of contributors and beneficiaries. Moreover, there is no job safety and therefore there is no long term contribution. All these lay pressure on public pension funds, which must be completed by private resources: private pensions and why not, a combination between them and saving products,” Puna said.
The World Bank representative shows that another challenge is that of labour force export.
“We also refer to those who leave to work abroad and who contribute to pension funds in countries where they work if they have legal work contracts there. They will benefit from pension in the country where they work,” Pauna points out.