Standard of living of pensioners in Slovakia - problems and outlooks

Pribišová Emília
PhD (Social work), Associate Professor, Department of Economics, marketing and management, International School of Management ISM Slovakia in Prešov, Prešov, Slovakia, E-mail:pribisova@ismpo.sk, ORCID ID:

Cite this article:

Pribišová E. (2023) Standard of living of pensioners in Slovakia - problems and outlooks. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Riven zhyttia pensioneriv u Slovachchyni - problemy ta perspektyvy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 5-6 (306-307), pp. 23-30.

Abstract

A large demographic problem is developing in today’s world and Slovakia is not an exception. Declining birth rate and increasing average life expectancy are the main reasons for the rising number of pensioners. Pay-as-you-go pension plan was first introduced by Prussian chancellor Otto von Bismarck in 1889. A system similar to that of Bismarck has spread around the developed world and is now used throughout Europe in various forms. The key principle is that the working people financially support the pensioners. People in post-productive age (65+ years) represent a considerable and to a large extent marginalized population group. In Slovakia, as of 31.12.2021, the proportion of such persons to the total population (1,407,596 pensioners in SK) is 17.39%. These are mainly pensioners who no longer engage in labour. Considering the amount of pensions paid, there is an increasing risk of poverty, which is attributable to low income of these individuals or families. Up to this moment, no definition of absolute poverty has been adopted in Slovakia. Let’s define people at financial risk as those being in material need. With regard to poverty, the highest-risk group comprises elderly people (pensioners), large or single-parent families and the long-term unemployed. Moreover, people with lower education level are at high risk, too. Although living wage is defined both administratively and in the legislature, it changes based on political decisions. Consequently, we can regard this part of the population as a group that is endangered the most.

Keywords

pensioner, standard of living, pension system, revenues and expenses of pensioners.

JEL classification: H550, H510; DOI: 10.32680/2409-9260-2023-5-6 -306-307-23-30

UD classification: 312, 314

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