DEMOGRAPHIC (IN)SECURITY: THE INFLUENCE OF AGING ON THE DESTABILITY OF THE PUBLIC FINANCE SYSTEM IN POLAND

The aim of the article is to analyze the recent changes of the Polish pension system and currently observed demographic trends and to estimate the influence of these factors on demographic security and the stability of public finance. In 2014, the contribution to open pension funds was substantially reduced. The lowering of the retirement age last year raised the demographic risk for the Polish public finance. The effects of the aforementioned changes and the future reform of the pension system will be multiplied by currently observed demographic trends. Firstly, the technological and scientific development of medicine raises the average life expectancy. Secondly, the fertility rate has increased in the last three decades which may cause problems with the replacement of generations. Thirdly, migration influences the process of depopulation. The reform of the pension system based on the introduction of a capital system will minimize the risk of unprofitability of public finances in the future and it will abolish political responsibility.