Difficulties in Romania's public pension system

Most European Union countries are facing with major problems regarding their public pension systems. Romania has large difficulties in its public pension system, of which we consider the most important is the large number of beneficiaries and the small number of contributors, that determine a huge social insurance budget deficit. The development of private pensions represents an opportunity to enhance the pensioners' living standard. This paper focuses on revealing the difficulties in the Romania's public pension system and making recommendations regarding the improvement of the system.