Untitled - Vysoká škola technická a ekonomická v Českých ...

64 Littera Scripta, 2009, roč. 2, č. 2ture cash flows paid to people in the retirement age should support the role offinancial markets. It is already obvious that the current method of financingpensions is insufficient, and its collapse would threaten in future. Several potentialalternatives exist how to sort out the situation established, but each of themcounts partially with a fact that people will have to secure partially themselvesin their productive age for the period of the retirement (Marková, 2005).In addition to the ”social component”, another compulsory ”private” componentof the pension will be generated, and will serve as a certain additionalfinancing. This fragment can consist of for example investments in pension supplementaryinsurance, or any other forms of financial resources returns legallyenacted by the government. Thus, it is clear that new large volumes of financialresources will be generated, which will be necessary to assess in course oftime. On this account, financial markets can expect an outstanding future andinvestment companies can already look forward to it nowadays.Pension ReformStarting from 1 January 2008 the benefit system of state social support significantlychanged. The biggest problem of public finances was an indefensiblegrowth of mandatory expenses. Just the state social support allowances alonegrew from CZK 34bn. in 2006 to CZK 54.4bn. in 2007. Unless the reformwould be executed, every other one would have much harder and painful impactespecially on underprivileged citizens.InitialStatusQuo• The main form how to secure people at an old age, in case of disabilityand in case of death represents the system of basic pension insurance inthe CR. In the framework of the basic pension insurance, approximately3.31m of pensions was paid out to 2.68m pensioners at the end of 2006,out of that approximately 1.99m was old-age pensioners.• Expenses per the pension insurance represent approximately 28% of thetotal expenses of the state budget. Insurance benefits related to the pensioninsurance form revenues of the state budget, which in 2008 amountedto CZK 276.9bn. received from pension insurance benefits, and expendituresof the state budget on pension insurance benefits amounted to CZK272.9bn.ExigencyofChanges• On basis of the current demographic prognoses, Czech population ageingwill be one of the fastest within the EU. Pension system as it is at presentis unable to face impacts of the demographic development, which consistspreferably in: