Though a country in transition, Romania already faces the same problems as the developed countries: the ageing of the population, a low fertility rate and a long period of transition from a state controlled economy to a market economy. The ratio of beneficiaries, including the farmers, to contributors is almost 100%, similar with developed countries.
In 1989, the year when Romanians threw out the Ceausescu communist regime, Romania had a PAYG pension system which covered all the employees.
Pension systems constitute the key element of modern welfare states. They epitomise current dilemmas of social policy — what kind of balance between public, private and voluntary sectors should be struck? How should demographic challenges of contemporary Western societies be dealt with? Considering the increasingly competitive environment of today’s global market is there a place for the comprehensive publicly managed and publicly provided pension benefits? What role should the European Union play in the field of pensions? Is the Anglo-American pension model on the rise?