Lowering Pension Age in Moldova: A Reversal of Previous Reforms
Reduced retirement age in Moldova
In a surprising turn of events, the Moldovan Parliament has approved a law to lower the pension age, marking a significant shift from the previous reforms that raised the retirement age in the country.
The new law, authored by Vladimir Oneştiuc, a socialist, aims to address the issue of many Moldovans not living long enough to retire, according to the current life expectancy trends. As a result, the retirement age for men will be 62 years, a decrease from the previous 63 years, and for women, it will be 57 years, down from the previous 61 and a half years. This effectively returns the retirement age in Moldova to the levels of 2002.
A Response to Life Expectancy Trends
The decision to lower the retirement age is partly in response to the moderate increase in life expectancy among the Moldovan population. As of 2024, life expectancy is estimated at 71.6 years, though this figure was affected by the pandemic[1]. The imbalance between the contributions made during working years and the retirement years, particularly among men, whose life expectancy post-retirement is relatively low at 67.0 years[1], has been a concern for the government.
International Context
The move to lower the retirement age is not unique to Moldova. Internationally, there is a trend towards adjusting retirement ages to align with life expectancy trends and ensure the sustainability of pension systems. For example, the World Bank has proposed increasing the retirement age to 72 years by 2065 in countries like Croatia[3].
In Moldova's context, agreements like the one with Italy, which allows Moldovans to combine work years in both countries for pension purposes, offer additional pathways for individuals to secure pensions[2]. This highlights the importance of international cooperation in managing pension systems in the face of aging populations and labor mobility.
Controversial Decision
The reform to lower the pension age in Moldova has sparked mixed reactions in the country and the media. Some argue that it is a necessary step to address the current life expectancy trends, while others contend that it may lead to financial strain on the pension system.
The pension reform was implemented under the strong recommendations of the International Monetary Fund (IMF) in 2017[4]. However, the current legislation reverses this reform, raising questions about the long-term sustainability of the pension system in Moldova.
[1] [Source] [2] [Source] [3] [Source] [4] [Source]
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