From challenges to the sustainability of the pension system in Moldova

Abstract

The article assesses the sustainability of the pension system in the Republic of Moldova, considering demographic ageing, economic vulnerability, and institutional change. Using a comparative approach, the study draws on national statistics, international databases, and policy documents to evaluate Moldova’s pension system alongside selected European Union countries - Bulgaria, Hungary, Latvia, and Romania, with similar historical and demographic backgrounds. Key indicators gauge both pension adequacy and the sustainability of financing. The analysis reveals how demographic shifts, migration, and labour market trends influence pension outcomes, highlighting Moldova's specific vulnerabilities compared to its regional peers. The discussion also explores reform options suited to the Moldovan context, focusing on short-term measures to reinforce the public payas-you-go system and on long-term strategies to develop supplementary mechanisms, such as voluntary savings. By placing Moldova’s challenges within a broader European framework, the paper contributes to the debate on how countries with fragile economies can develop resilient pension systems that ensure social protection amidst ongoing demographic challenges and economic pressures.