Moldova should reconsider its social security policy as demographic changes continue to put increasing pressure on the country’s social insurance budget, Finance Minister Victoria Belous said during the “Puterea a Patra” programme on N4.
According to Belous, one of the main challenges is the declining ratio between the number of working-age people paying social contributions and the number of pensioners.
“The burden on the social insurance budget is increasing year by year because, in addition to the low birth rate, the contribution of active employees is decreasing in relation to one pensioner,” Belous said.
The minister said demographic trends require the government to reconsider its approach to social insurance policy.
“It is reasonable for us, as a country, to review our social security policy, because the demographic factor is, in my view, one of the most important reasons,” Belous said.
Among the factors putting pressure on the system are the low birth rate, population migration and increasing life expectancy.
Belous said the combination of these factors requires the government to assess how the current social insurance system is structured and consider possible policy adjustments.
“There are several factors that raise questions and also create a legal obligation for the government to review its policy in this area,” the Finance Minister said.
According to the minister, the demographic imbalance is already reflected in the current structure of Moldova’s social insurance system.
There are currently around 600,000 pensioners, while the number of employees stands at slightly more than 600,000, meaning the ratio between pensioners and employees is practically one to one.
The government is expected to examine the sustainability of the social insurance system as demographic pressures continue to affect the relationship between contributors and beneficiaries.