Population Aging as a Threat to the Budget Crisis: Actuarial Analysis

Abstract

Global demographic crisis (decline of fertility and mortality rates together with rising life expectancy and the increasing number of pensioners) is often used to justify state support business by restricting unreasonably increasing social expenditures of the state, in particular, raising the retirement age is inevitable. As for the payment of old age pensions accounts for a quarter of budget expenditures, the prevention of the threat of fiscal crisis associated with the pension system, and the rate of the retirement age becomes one of budget forming parameters in the process of strategic planning and forecasting.