Effects of population ageing on the pension system in Belarus

Katerina Lisenkova, Kateryna Bornukova

Research output: Contribution to journalArticle

4 Citations (Scopus)
54 Downloads (Pure)

Abstract

Belarus currently has a relatively generous pay-as-you-go pension system, but population aging coupled with recent problems with economic growth will soon make it unsustainable. We build a rich overlapping generation model of Belarusian economy, which shows that without reform the Pension Fund will run into persistent and growing deficit, which will reach 9% of GDP by 2055. We also compute the fiscal projections of several parametric pension reforms, including the reform which will start in 2017. To avoid a deficit without reform, pension benefits would have to be substantially reduced. The increase of retirement age to 65 for both genders has a strong positive effect on sustainability of the pension system and keeps the deficit below 2% of GDP.

Original languageEnglish
Pages (from-to)103-118
Number of pages16
JournalBaltic Journal of Economics
Volume17
Issue number2
Early online date4 May 2017
DOIs
Publication statusE-pub ahead of print - 4 May 2017

Fingerprint

pension
pension reform
deficit
pay-as-you-go
pension fund
retirement age
reform
projection
economic growth
sustainability
economy
gender
Population aging
Belarus
Pension system
Pension reform

Keywords

  • Belarus
  • demography
  • pension reform
  • pension system
  • retirement age

Cite this

Lisenkova, Katerina ; Bornukova, Kateryna. / Effects of population ageing on the pension system in Belarus. In: Baltic Journal of Economics. 2017 ; Vol. 17, No. 2. pp. 103-118.
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Effects of population ageing on the pension system in Belarus. / Lisenkova, Katerina; Bornukova, Kateryna.

In: Baltic Journal of Economics, Vol. 17, No. 2, 04.05.2017, p. 103-118.

Research output: Contribution to journalArticle

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