THE IMPACT OF DEMOGRAPHIC CHANGES ON THE PENSION SYSTEM FINANCING SUSTAINABILITY IN THE FEDERATION OF BOSNIA AND HERZEGOVINA
The aging of the population causes unfavourable demographic trends that are significantly affecting the current state and the future of pension systems on a global basis. The increased number of pensioners and a significant decrease in the rate of demographic reproduction have negative effects on t...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, University of Tuzla
2014-05-01
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| Series: | Economic Review |
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| Online Access: | https://www.er.ef.untz.ba/index.php/er/article/view/148 |
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| author | Slavo Vukić Danijel Knežević |
| author_facet | Slavo Vukić Danijel Knežević |
| author_sort | Slavo Vukić |
| collection | DOAJ |
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The aging of the population causes unfavourable demographic trends that are significantly affecting the current state and the future of pension systems on a global basis. The increased number of pensioners and a significant decrease in the rate of demographic reproduction have negative effects on the sustainability of pension systems based on intergenerational solidarity (pay as you go systems), which are prevalent in most European countries. In this paper, the issue of demographic aging and pension systems is analysed from the point of view of sustainability of public finance in the Federation of Bosnia and Herzegovina (FBiH). There are three projected scenarios and the worst one is based on the assumption that pension expenditures will grow at a pace similar to the period from 2002 to 2012. In that case, the share of pension expenditures of Gross Domestic Product (GDP) in 2035 would be over 25%, which is unsustainable by any means. According to long-term projections of the reformed pension system of the FBiH, the greater stability of initial and average pensions, as well as stable social security of pensioners, will result in a relatively stable share of pension expenditures in GDP, of about 10%.
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| format | Article |
| id | doaj-art-1f148080e37a43f794efc01b77c936be |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2014-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-1f148080e37a43f794efc01b77c936be2025-02-11T00:33:18ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2014-05-01121THE IMPACT OF DEMOGRAPHIC CHANGES ON THE PENSION SYSTEM FINANCING SUSTAINABILITY IN THE FEDERATION OF BOSNIA AND HERZEGOVINASlavo Vukić0Danijel Knežević1University of Vitez/Travnik and Health Insurance Institute of the Posavska County, Bosnia and Herzegovina Faculty of Economics, Zagreb The aging of the population causes unfavourable demographic trends that are significantly affecting the current state and the future of pension systems on a global basis. The increased number of pensioners and a significant decrease in the rate of demographic reproduction have negative effects on the sustainability of pension systems based on intergenerational solidarity (pay as you go systems), which are prevalent in most European countries. In this paper, the issue of demographic aging and pension systems is analysed from the point of view of sustainability of public finance in the Federation of Bosnia and Herzegovina (FBiH). There are three projected scenarios and the worst one is based on the assumption that pension expenditures will grow at a pace similar to the period from 2002 to 2012. In that case, the share of pension expenditures of Gross Domestic Product (GDP) in 2035 would be over 25%, which is unsustainable by any means. According to long-term projections of the reformed pension system of the FBiH, the greater stability of initial and average pensions, as well as stable social security of pensioners, will result in a relatively stable share of pension expenditures in GDP, of about 10%. https://www.er.ef.untz.ba/index.php/er/article/view/148demographic changespension expenditurespublic financeFederation of Bosnia and Herzegovina |
| spellingShingle | Slavo Vukić Danijel Knežević THE IMPACT OF DEMOGRAPHIC CHANGES ON THE PENSION SYSTEM FINANCING SUSTAINABILITY IN THE FEDERATION OF BOSNIA AND HERZEGOVINA Economic Review demographic changes pension expenditures public finance Federation of Bosnia and Herzegovina |
| title | THE IMPACT OF DEMOGRAPHIC CHANGES ON THE PENSION SYSTEM FINANCING SUSTAINABILITY IN THE FEDERATION OF BOSNIA AND HERZEGOVINA |
| title_full | THE IMPACT OF DEMOGRAPHIC CHANGES ON THE PENSION SYSTEM FINANCING SUSTAINABILITY IN THE FEDERATION OF BOSNIA AND HERZEGOVINA |
| title_fullStr | THE IMPACT OF DEMOGRAPHIC CHANGES ON THE PENSION SYSTEM FINANCING SUSTAINABILITY IN THE FEDERATION OF BOSNIA AND HERZEGOVINA |
| title_full_unstemmed | THE IMPACT OF DEMOGRAPHIC CHANGES ON THE PENSION SYSTEM FINANCING SUSTAINABILITY IN THE FEDERATION OF BOSNIA AND HERZEGOVINA |
| title_short | THE IMPACT OF DEMOGRAPHIC CHANGES ON THE PENSION SYSTEM FINANCING SUSTAINABILITY IN THE FEDERATION OF BOSNIA AND HERZEGOVINA |
| title_sort | impact of demographic changes on the pension system financing sustainability in the federation of bosnia and herzegovina |
| topic | demographic changes pension expenditures public finance Federation of Bosnia and Herzegovina |
| url | https://www.er.ef.untz.ba/index.php/er/article/view/148 |
| work_keys_str_mv | AT slavovukic theimpactofdemographicchangesonthepensionsystemfinancingsustainabilityinthefederationofbosniaandherzegovina AT danijelknezevic theimpactofdemographicchangesonthepensionsystemfinancingsustainabilityinthefederationofbosniaandherzegovina AT slavovukic impactofdemographicchangesonthepensionsystemfinancingsustainabilityinthefederationofbosniaandherzegovina AT danijelknezevic impactofdemographicchangesonthepensionsystemfinancingsustainabilityinthefederationofbosniaandherzegovina |