The Public Pension System in Romania: Myths and Facts

Marian PREDA, Vlad GRIGORAŞ

Abstract


The article seeks to critically analyze and disprove, using solid statistical evidence, five myths that circulate in the Romanian public sphere about the state pension system. The argument shows that in Romania a large proportion of pensioners are actually fairly ‘young’. Their life expectancy is higher than some claim it is, and, on average, they are less poor than young people, children, and the average population, their pension reasonably replaces their salary income, and, despite its public support, the lower retirement age for women compared to that of men leads to disadvantages for the female pensioners. The article seeks to contribute to a better understanding of the pension system and its challenges, and to outline some implicit solutions for amending/supporting it by eliminating pressures (based on populism or ignorance) on the public pension system, in particular in the context of the current economic crisis and the pronounced aging of the population.


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