Pension Benefits Adequacy and Social Security Budget Sustainability-What Influences the Resilience of Public Pension Systems in Central and Eastern European Countries?

Abstract

This research examines the key factors contributing to the resilience of public pension systems in Central and Eastern European countries, focusing on strengthening pension benefit adequacy and the sustainability of social security budgets. The paper delves into how maintaining a balance between these two crucial aspects can enhance the long-term stability and resilience of public pension systems in the region. Using the Vector Autoregression (VAR) method, the influence of some demographic factors, labour market characteristics, financial and taxation features, financial education, technical development, and government effectiveness on the social security budget sustainability and pension benefits adequacy was investigated. The empirical results reflect the specific modus operandi of contributory public pension systems and enhance the broader understanding of how policy decisions can strengthen the resilience of public pension systems amid demographic and economic challenges.