Nalo beni pokojninski skladi, dolgoro na vzdr nost javnih financ in finan na stabilnost v Sloveniji = Supplementary pension schemes, long-term sustaniability of public finances and financial stability in Slovenia

Demographic pressures urge authorities to find solutions for their publicpension systems. Supplementary (capital market based) pensionschemes have become a prerequisite mechanism for avoiding povertyof nations. In this contribution we stress the need for the Sloveniangovernment to reform the existing embryonic supplementary pensionsystem, which will above all be basedon competitive principles.Besides the well funded collective pillar, we argue that governmentshould introduce individual retirement accounts which would serve asa mechanism to provide individuals with an incentive to save for theirretirement use. By accomplishing that, Slovenia would not only solvefiscal pressures stemming from the unsustainable public pension systembut would also substantially underpin underdeveloped nationalfinancial markets and institutions.