The demographic aging rate rose from 13.6% to 16.2% compared with 2005. According to the predictions of the UN and the Demographic Research Center of the National Institute for Economic Research of the Academy of Sciences of Moldova, the persons aged 60 and over will represent 25% of the population in 2035. In an interview for IPN, Laura Grecu, president of the National House of Social Insurance, said given such a situation, measures should be taken immediately, sometimes unpopular, such as the extension of the retirement age, so as to ensure the sustainability of the pension system in the short, medium and long terms.

Laura Grecu stated that the law adopted by Parliament provides for the gradual adjustment of the retirement age for men and women to the standard retirement age of 63. Compared with the current situation, the retirement age for men will rise by one year (by four months a year until July 1, 2019), while for women by six years (by six months until July 1, 2028). The prolongation of the retirement age is dictated by the life expectancy recorded in 2016 – of 75.5 years for women and 67.5 years for men.

“The increase in retirement age and, respectively, in the insurance period will offer the people the possibility of remaining actively engaged in work. This means, first of all, a higher pension and also active aging,” said Laura Grecu.

At the same time, the persons can benefit from an early old-age pension, which is a new innovative element of the pension system. The persons will be able to apply for an old-age pension three years beforehand (60 years in the case of men and women), on condition that an insurance period of 34 years is reached. The non-contributive periods are not included in this insurance period. The persons who will continue to work after retirement will have their pension recalculated once in two years.

Source: IPN