Ana Anufrijev – Čačak School of Business, Gradski park 2, 11090 Belgrade, Serbia
Goran Dašić – Modern Business School – Terazije 27, 11000 Belgrade, Serbia




5th International Scientific-Business Conference – LIMEN 2019 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – CONFERENCE PROCEEDINGS, Graz, Austria, December 12, 2019, published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-26-4, ISSN 2683-6149, DOI:



The pension system is a very important part of every national economy, not only economically,
but also socially and financially. It is known that the first pension in Serbia was paid back in 1833.
by Milos Obrenovic, so it would be rightly expected that today, after almost 190 years, that there is a
stable public pension system that provides security for today’s and future retirees.
It should be noted that in Serbia there is a fear among the population related to private pension funds, known
in the literature as the third pillar of pension insurance. Fear is a product of insufficient financial literacy and
awareness, on the one hand, but also of the decades-long term to which this insurance applies, on the other.
The problem of the existing public pension system, which is referred to in the literature as „pay and
go”, and is also known in practice under the pseudonym „flow boiler”, is its unsustainability. Back
in the days when a contribution-based insurance system was being developed in Germany, Bismarck
envisaged the limit to which the system could operate. This system is suitable for emerging economies
and demographics for the benefit of the young population, that is, as long as the number of employees
and retirees is 4:1. Difficulties arise when the ratio of employees to retirees is 3:1. The official ratio of
employees and pensioners in Serbia is 1.2:1, indicating that a collapse is inevitable.



Pension system, Employee-pensioner ratio, Demographic structure, PIO contributions.




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