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Sustainability of Mandatory Pension Insurance in the Circular Economy: A Comparative Analysis
Abstract
The main characteristic of pension systems is financial stability. The authors will present some models of the pension system, economics models such as the theory of income uncertainty, overlapping generations' model. The authors will present the interrelation of employment, population, and circular economy, trying to improve the existing pension system in Serbia. The circular economy is a response to the growing needs of humanity. It is referred to as sustainable development in all the spheres of human life. The circular economies can also refer to the sustainability of the pension system, which is linked to the quality of life. The quality of life is part of sustainable development as its social component. The chapter provides an overview of the sustainability of the pension system by reducing the costs with employment increasing. As an example of good practice, the authors present Australia and Chile in a small analysis that indicates pension fund sustainability. This practice can serve as an example of the improvement of the pension system in Serbia and similar smaller countries.
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