Demographic transition Stage 1 Stage 2 Stage 3 Stage 4 birth and death rates Birth Rate Population population Demographic Growth Death Rate 1700s 1800s 1900s 2000s

Population structure and pension system methods Current/future population structure Previous population structure Dissaving (insurance) retirement retirement insurance saving The change of population structure suggests not only applying new methods to the old-age pension system but also to separate it within social security

GDP divided between generations GDPR _______ GDP 1 A B C2 opt. (?) C1 opt. (?) time

GDP2 GDP1 GDP1 T1 T2 R1 R2

Intergenerational exchange In order to finance retirement consumption pension rights need to be exchanged for a part of the real product (irrespective to the form they are expressed in).

Intergenerational exchange z% z1 ? z4 1/d4 1/d2 1/d3 1/d1 c1 c2 c3 c%

Long-term saving  high account value

Later retirement  higher benefit