Different ways of using second pillar savings in Slovakia
Main Article Content
Abstract
Recently, first pensions have been paid from the savings corresponding to the second pillar of the pension system in Slovakia. The paper emphasizes that the advantage of the second pillar cannot be assessed solely using the level of pensions paid. Its strength lies in the number of alternatives it offers. Based on calculations, we have analysed benefits of various alternatives in different circumstances. At present, the need for a long-term care in the case of dependency is a common problem. Most pensioners do not have means to cover the associated costs. We present our own model of the long-term care insurance as well as the replacement rate it could provide.
Article Details
How to Cite
Melicherčík, I., Podstrelená, N., & Szűcs, G.
(2020).
Different ways of using second pillar savings in Slovakia.
Proceedings Of The Conference Algoritmy, , 249 - 258.
Retrieved from http://www.iam.fmph.uniba.sk/amuc/ojs/index.php/algoritmy/article/view/1595/844
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Articles
References
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[2] Default strategy in pension saving, Institute of Financial Policy, Bratislava (2019), https://www.mfsr.sk/sk/financie/institut-financnej-politiky/publikacie-ifp/ ekonomicke-analyzy/51-default-strategy-pension-savings-case-slovakia.html.
[3] Euro area yield curves, European Central Bank, (2019), https://www.ecb.europa.eu/stats/ financial_markets_and_interest_rates/euro_area_yield_curves/html/index.en. html.
[4] HMD, The Human Mortality Database, (2019), https://www.mortality.org/.
[5] R. J. Hyndman with contributions from H. Booth, J. Maindonald and L. Tickle , Demography: Forecasting mortality, fertility, migration and population Data. R package version 1.22. (2019), https://cran.r-project.org/web/packages/demography.
[6] S. Kilianová, I. Melicherčı́k and D. Ševčovič, Dynamic accumulation model for the second pillar of the Slovak pension system, Finance a uver Czech Journal of Economics and Finance, 56, No 11-12 (2006), pp. 506–521.
[7] M. A. Milevsky, Optimal asset allocation towards the end of the life cycle: To annuitize or not to annuitize?, Journal of Risk and Insurance, 65, No 3 (1998), pp. 401–190.
[8] I. Melicherčı́k, G. Szűcs and I. Vilček, Investment strategies in defined-contribution pension schemes, AMUC, 84, No 2 (2015), pp. 191–204.
[9] Ch. M. Murtaugh, B. C. Spillman and M. J. Warshawsky, In sickness and in health: an annuity approach to financing long-term care and retirement income, Journal of Risk and Insurance, 68, No 2 (2015), pp. 225–254.
[10] Mortality Tables of the SO SR 2018, Statistical Office of the Slovak Republic, (2019), https: //slovak.statistics.sk
[11] R Core Team, R: A language and environment for statistical computing. R Foundation for Statistical Computing, Vienna, Austria, 2019, https://www.R-project.org/.
[12] J. Šebo and Ľ. Šebová, Suboptimality of immediate annuitization in private pension schemes, Ekonomický časopis, 64, No 2 (2016), pp. 169–190.
[13] J. Špirková, G. Szűcs and I. Kollár, Detailed view of a payout product of the old-age pension saving scheme in Slovakia, Ekonomický časopis, 67, No 7 (2019), pp. 761–777.
[14] Technical notes of ECB, European Central Bank (2019).
[15] P. Willemé, The Long-Term Care System for the Elderly in Belgium, SSRN Electronic Journal, 10.2139/ssrn.2033672 (2010).