{"id":447837,"date":"2019-12-27T11:26:08","date_gmt":"2019-12-27T11:26:08","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=447837"},"modified":"2020-01-05T14:17:05","modified_gmt":"2020-01-05T14:17:05","slug":"what-does-it-mean-to-be-a-retired-person-in-the-republic-of-moldova","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/what-does-it-mean-to-be-a-retired-person-in-the-republic-of-moldova\/","title":{"rendered":"Earning less than spending or what does it mean to be a retired person in the Republic of Moldova?"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>The pensioners of the Republic of Moldova will receive a one-time support payment of <strong>700 lei<\/strong> (about 36 euros) at the begging of January, as a <a href=\"https:\/\/msmps.gov.md\/ro\/content\/pensionarii-vor-primi-un-ajutor-unic-de-700-de-lei-ajunul-sarbatorilor-de-iarna\">statement<\/a> of Ministry of Health, Labour and Social Protection announced.\u00a0The financial support will be granted to all beneficiaries of pensions (employment-based pensions, disability pensions, descendants received pensions, pensions for former military employees, state officials, cultural employees, beneficiaries of state social allowances, etc.) who do not receive a monthly pension of more than <strong>2000 lei<\/strong> (about 104 euros).<\/p>\n<p>Such a payment was granted last year as well and maybe will be granted next year. <span style=\"color: #993300\">The questions here are what can a pensioner in Moldova do with this money and what does it mean to be a retired person in this country?<\/span><\/p>\n<h3>Earnings of retired people<\/h3>\n<p>According to the official <a href=\"https:\/\/cnas.md\/doc.php?l=ro&amp;idc=244&amp;id=5028&amp;t=\/Statistica\/Informatie-privind-beneficiarii-de-pensii-alocatii-sociale-de-stat-si-indemnizatii-adresate-familiilor-cu-copii-aflati-la-evidenta-Casei-Nationale-de-Asigurari-Sociale-la-situatia-de-01102019\">statistics<\/a> of the National Social Insurance Authority of the Republic of Moldova, there are <strong>700 467<\/strong> beneficiaries of pensions, being on record on October 1, 2019. 75.4% of them are represented by the retired persons who receive employment-based pensions, the average amount of it being<strong> 1840.56 le<\/strong>i (about 96 euros). 9008 retired persons are granted also a social allowance for aged people of 215.57 lei (about 11 euros) on average.<\/p>\n<p>The situation is even worse when looking at the <strong><em>minimum legal amount<\/em><\/strong> of the employment-based pension in the Republic of Moldova, which is\u00a0<strong>1079.33 lei<\/strong> (about 56 euros), whereas the official<strong><em> subsistence minimum<\/em><\/strong> for retired people in the Republic of Moldova was calculated as being <strong>1 726.5 lei<\/strong> (about 90 euros). The average subsistence minimum for the entire population was 2 028.3 lei in the first half of 2019, according to the Nationals Bureau of Statistics (NBS) <a href=\"https:\/\/statbank.statistica.md\/pxweb\/pxweb\/ro\/30%20Statistica%20sociala\/30%20Statistica%20sociala__04%20NIV__NIV050\/NIV050090.px\/table\/tableViewLayout1\/?rxid=b2ff27d7-0b96-43c9-934b-42e1a2a9a774\">data<\/a>.<\/p>\n<p>Moreover, as a <a href=\"http:\/\/fes-moldova.org\/fileadmin\/user_upload\/2018\/publications\/Living_Wage_Moldova_Rom.pdf\">study<\/a> conducted by <em>Platzforma <\/em>and the<em> Friedrich Ebert Stiftung Moldova Foundation<\/em>\u00a0in 2018 showed, the <em><strong>minimum living wage<\/strong><\/em> (the necessary minimum income, taking into consideration the basic needs for a decent life) for a person who resides in the urban area should be not lower than 12 306.8 lei and for the one who resides in the rural area not lower than 11 359.6 lei per month.\u00a0 Consequently, the minimum income for a retired person, when applying the same principle, should amount <strong>10 072.4 lei (<\/strong>about 524\u00a0euros) per month, that being\u00a0<span style=\"color: #993300\">a nine-times higher amount<\/span> than the current minimum level of the employment-based pension.<\/p>\n<p>As the <a href=\"http:\/\/lex.justice.md\/md\/313291\/\">law<\/a> of the Republic of Moldova states, the employment-based pensions are calculated from the <span style=\"color: #000080\">average monthly income <span style=\"color: #000000\">received<\/span><\/span> after January 1, 1999, until the retirement age is reached, taking into account the total contribution period. For the period worked before 1999, only the contribution period is taken into account, being added to the period after 1999.\u00a0The same formula is applied for everyone, no matter what position was held. What is important is the <span style=\"color: #000080\">average wage received during the contributing period<\/span> and the<span style=\"color: #000080\"> term the contribution was made.<\/span><\/p>\n<p>Therefore, the pensions received in the Republic of Moldova are calculated, starting from 2017, using the following formula:<\/p>\n<h2 style=\"text-align: center\"><span style=\"color: #000080\">P = 1.35% x Tc x As<\/span><\/h2>\n<p>where <strong>P<\/strong> is the total amount of pension, <strong>1.35%<\/strong> &#8211;\u00a0the accrual rate for the contribution years after January 1, 1999, <strong>Tc<\/strong> &#8211; total contribution period (years), <strong>As<\/strong> &#8211;\u00a0the average monthly income from which the contribution was paid.<\/p>\n<p>Also, from July 1, 2017, the retirement age started to be gradually increased both for men and women. In 2020, retirement will be at the age of <strong>59 years<\/strong> for women and <strong>63 years<\/strong> for men. Until 2028, the retirement age for women will equalise that of men (63 years), as the National Social Insurance Authority of the Republic of Moldova <a href=\"https:\/\/cnas.md\/tabview.php?l=ro&amp;idc=534&amp;t=\/Pensii\/Pensie-pentru-limita-de-virsta\">provided<\/a>.<\/p>\n<h3>Social and health policies for retired people<\/h3>\n<p>The members of the <strong>Platform for Active Ageing,<\/strong>\u00a0which is involved in promoting the needs of aged people in public policy documents and supports the elderly to claim their rights, fight against discrimination and overcome poverty, have monitored the implementation of\u00a0the<em> National Program for Health Promotion for the years 2016-2020<\/em> and the <em>National Program in the field of Food and Nutrition for the years 2014-2020. <\/em>The platform members\u00a0concluded that these programs\u00a0<span style=\"color: #993300\">do not integrate the needs of elderly people<\/span>. A mechanism for monitoring and evaluating the programs lacks, as well as a clear designation of the responsible persons in the institutions that implement health policies, that making the programs&#8217; results have no impact on the elderly population, as zdg.md <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-sociale\/actiunile-din-cadrul-politicilor-de-sanatate-trebuie-sa-tinteasca-si-grupul-de-varstnici\">informed<\/a>.<\/p>\n<p>Another <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-sociale\/video-studiu-varstnicii-discriminati-pe-piata-muncii\">conclusion<\/a> of the platform was that the <em>National Strategy on Employment for the years 2017-2021<\/em> <span style=\"color: #000000\">does not reflect progress regarding the employment of elderly people<\/span>, the actions reported not indicating elements focused on this category of population. According to the Platform for Active Ageing, the <span style=\"color: #993300\">employment policies are mainly oriented towards the younger population segments, aged persons being ignored,<\/span> as their contribution to the development of the society is not recognised.<\/p>\n<h3>Social phenomena influencing retirement<\/h3>\n<p>Three years ago, a <strong>reform<\/strong> of retirement system in the Republic of Moldova was implemented, bringing new conditions of retirement, new ways of calculating pensions,\u00a0the equalisation of the retirement age (63 years) and the contribution period (34 years) of women with that of men. Still, <span style=\"color: #993300\">the retirement system\u00a0 is not financially sustainable in the long run\u00a0<\/span>due to fast ageing of the population and the migration of the workforce, as a study conducted by the <em>Friedrich Ebert Stiftung Moldova Foundation<\/em> and the <em>WatchDog.MD Community <\/em>showed<em>.<\/em><\/p>\n<p>The study argued that, over the next few years, there is a risk that fewer people will contribute to the social insurance budget, IPN <a href=\"https:\/\/www.ipn.md\/ro\/sistemul-de-pensionare-din-moldova-este-lipsit-de-sustenabilitate-financiara-stu-7967_1068858.html\">reports<\/a>. Oleg Tofilat, the co-author of the study, noted that the even though the average wage increases, the number of employees remains constant, the black economy is shrinking and the retirement age has been raised, <span style=\"color: #993300\">the contributions to social insurance have decreased<\/span>,\u00a0 as the number of pensioners is rising, while the working population is migrating to other countries.<\/p>\n<p>At the beginning of 2019, there were<strong> 558.4 thousand<\/strong> people aged 60 years and over in Moldova, which represented<strong> 20.8%<\/strong> of the total number of the population.\u00a0The share of people aged 60 or more is constantly increasing, as the NBS <a href=\"https:\/\/statistica.gov.md\/newsview.php?l=ro&amp;idc=168&amp;id=6472\">data<\/a> shows. In\u00a02019, as compared to 2014, the ageing coefficient of the population registered a <strong>3.3 percentage<\/strong> point increase, which corresponds to a <span style=\"color: #993300\">high level of demographic ageing<\/span>. The average age of the Moldovan population hit 38.7 years in 2019, as compared to 37.2 years in 2014.<\/p>\n<p>On the other hand, <strong>159 118 persons<\/strong> left the country, staying abroad at least 9 months cumulatively, according to the data from 2017. More than\u00a0<strong>73%<\/strong> of these people were aged between 20 and 59, according to the NBS <a href=\"https:\/\/statbank.statistica.md\/pxweb\/pxweb\/ro\/20%20Populatia%20si%20procesele%20demografice\/20%20Populatia%20si%20procesele%20demografice__POPrec__POP070\/POP070100rcl.px\/table\/tableViewLayout1\/?rxid=b2ff27d7-0b96-43c9-934b-42e1a2a9a774\">data<\/a>.<\/p>\n<p>**<\/p>\n<p>The pensioners of the Republic of Moldova seem to receive an equitable payment when retiring. However, the aged people of Moldova don&#8217;t have their interests considered and are often marginalised, ignored or even discriminated. For the majority of aged population the received pension is far from being enough for a decent life. A lot of elderly don&#8217;t have enough money for food, medicines, utilities or clothes, all the more for entertainment or travelling. The retirement system is improving, but it is estimated that there will be not enough contributions made by the working force in order to pay the future pensions for the retired people of Moldova. The problem is much more deeper, being connected to some other social phenomena that affect the country, so are the solutions to be found.<\/p>\n<p>Photo: moldova.org<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>The pensioners of the Republic of Moldova will receive a one-time support payment of 700 lei (about 36 euros) at the begging of January, as a statement of Ministry of Health, Labour and Social Protection announced.\u00a0The financial support will be granted to all beneficiaries of pensions (employment-based pensions, disability pensions, descendants received pensions, pensions for [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":447839,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,56],"tags":[35,27,520,519,518,438],"class_list":["post-447837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-society","category-reportaje","tag-important","tag-moldova","tag-pension","tag-policy","tag-retirement","tag-social"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>The pensioners of the Republic of Moldova will receive a one-time support payment of <strong>700 lei<\/strong> (about 36 euros) at the begging of January, as a <a href=\"https:\/\/msmps.gov.md\/ro\/content\/pensionarii-vor-primi-un-ajutor-unic-de-700-de-lei-ajunul-sarbatorilor-de-iarna\">statement<\/a> of Ministry of Health, Labour and Social Protection announced.\u00a0The financial support will be granted to all beneficiaries of pensions (employment-based pensions, disability pensions, descendants received pensions, pensions for former military employees, state officials, cultural employees, beneficiaries of state social allowances, etc.) who do not receive a monthly pension of more than <strong>2000 lei<\/strong> (about 104 euros).<\/p>\n<p>Such a payment was granted last year as well and maybe will be granted next year. <span style=\"color: #993300\">The questions here are what can a pensioner in Moldova do with this money and what does it mean to be a retired person in this country?<\/span><\/p>\n<h3>Earnings of retired people<\/h3>\n<p>According to the official <a href=\"https:\/\/cnas.md\/doc.php?l=ro&amp;idc=244&amp;id=5028&amp;t=\/Statistica\/Informatie-privind-beneficiarii-de-pensii-alocatii-sociale-de-stat-si-indemnizatii-adresate-familiilor-cu-copii-aflati-la-evidenta-Casei-Nationale-de-Asigurari-Sociale-la-situatia-de-01102019\">statistics<\/a> of the National Social Insurance Authority of the Republic of Moldova, there are <strong>700 467<\/strong> beneficiaries of pensions, being on record on October 1, 2019. 75.4% of them are represented by the retired persons who receive employment-based pensions, the average amount of it being<strong> 1840.56 le<\/strong>i (about 96 euros). 9008 retired persons are granted also a social allowance for aged people of 215.57 lei (about 11 euros) on average.<\/p>\n<p>The situation is even worse when looking at the <strong><em>minimum legal amount<\/em><\/strong> of the employment-based pension in the Republic of Moldova, which is\u00a0<strong>1079.33 lei<\/strong> (about 56 euros), whereas the official<strong><em> subsistence minimum<\/em><\/strong> for retired people in the Republic of Moldova was calculated as being <strong>1 726.5 lei<\/strong> (about 90 euros). The average subsistence minimum for the entire population was 2 028.3 lei in the first half of 2019, according to the Nationals Bureau of Statistics (NBS) <a href=\"https:\/\/statbank.statistica.md\/pxweb\/pxweb\/ro\/30%20Statistica%20sociala\/30%20Statistica%20sociala__04%20NIV__NIV050\/NIV050090.px\/table\/tableViewLayout1\/?rxid=b2ff27d7-0b96-43c9-934b-42e1a2a9a774\">data<\/a>.<\/p>\n<p>Moreover, as a <a href=\"http:\/\/fes-moldova.org\/fileadmin\/user_upload\/2018\/publications\/Living_Wage_Moldova_Rom.pdf\">study<\/a> conducted by <em>Platzforma <\/em>and the<em> Friedrich Ebert Stiftung Moldova Foundation<\/em>\u00a0in 2018 showed, the <em><strong>minimum living wage<\/strong><\/em> (the necessary minimum income, taking into consideration the basic needs for a decent life) for a person who resides in the urban area should be not lower than 12 306.8 lei and for the one who resides in the rural area not lower than 11 359.6 lei per month.\u00a0 Consequently, the minimum income for a retired person, when applying the same principle, should amount <strong>10 072.4 lei (<\/strong>about 524\u00a0euros) per month, that being\u00a0<span style=\"color: #993300\">a nine-times higher amount<\/span> than the current minimum level of the employment-based pension.<\/p>\n<p>As the <a href=\"http:\/\/lex.justice.md\/md\/313291\/\">law<\/a> of the Republic of Moldova states, the employment-based pensions are calculated from the <span style=\"color: #000080\">average monthly income <span style=\"color: #000000\">received<\/span><\/span> after January 1, 1999, until the retirement age is reached, taking into account the total contribution period. For the period worked before 1999, only the contribution period is taken into account, being added to the period after 1999.\u00a0The same formula is applied for everyone, no matter what position was held. What is important is the <span style=\"color: #000080\">average wage received during the contributing period<\/span> and the<span style=\"color: #000080\"> term the contribution was made.<\/span><\/p>\n<p>Therefore, the pensions received in the Republic of Moldova are calculated, starting from 2017, using the following formula:<\/p>\n<h2 style=\"text-align: center\"><span style=\"color: #000080\">P = 1.35% x Tc x As<\/span><\/h2>\n<p>where <strong>P<\/strong> is the total amount of pension, <strong>1.35%<\/strong> &#8211;\u00a0the accrual rate for the contribution years after January 1, 1999, <strong>Tc<\/strong> &#8211; total contribution period (years), <strong>As<\/strong> &#8211;\u00a0the average monthly income from which the contribution was paid.<\/p>\n<p>Also, from July 1, 2017, the retirement age started to be gradually increased both for men and women. In 2020, retirement will be at the age of <strong>59 years<\/strong> for women and <strong>63 years<\/strong> for men. Until 2028, the retirement age for women will equalise that of men (63 years), as the National Social Insurance Authority of the Republic of Moldova <a href=\"https:\/\/cnas.md\/tabview.php?l=ro&amp;idc=534&amp;t=\/Pensii\/Pensie-pentru-limita-de-virsta\">provided<\/a>.<\/p>\n<h3>Social and health policies for retired people<\/h3>\n<p>The members of the <strong>Platform for Active Ageing,<\/strong>\u00a0which is involved in promoting the needs of aged people in public policy documents and supports the elderly to claim their rights, fight against discrimination and overcome poverty, have monitored the implementation of\u00a0the<em> National Program for Health Promotion for the years 2016-2020<\/em> and the <em>National Program in the field of Food and Nutrition for the years 2014-2020. <\/em>The platform members\u00a0concluded that these programs\u00a0<span style=\"color: #993300\">do not integrate the needs of elderly people<\/span>. A mechanism for monitoring and evaluating the programs lacks, as well as a clear designation of the responsible persons in the institutions that implement health policies, that making the programs&#8217; results have no impact on the elderly population, as zdg.md <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-sociale\/actiunile-din-cadrul-politicilor-de-sanatate-trebuie-sa-tinteasca-si-grupul-de-varstnici\">informed<\/a>.<\/p>\n<p>Another <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-sociale\/video-studiu-varstnicii-discriminati-pe-piata-muncii\">conclusion<\/a> of the platform was that the <em>National Strategy on Employment for the years 2017-2021<\/em> <span style=\"color: #000000\">does not reflect progress regarding the employment of elderly people<\/span>, the actions reported not indicating elements focused on this category of population. According to the Platform for Active Ageing, the <span style=\"color: #993300\">employment policies are mainly oriented towards the younger population segments, aged persons being ignored,<\/span> as their contribution to the development of the society is not recognised.<\/p>\n<h3>Social phenomena influencing retirement<\/h3>\n<p>Three years ago, a <strong>reform<\/strong> of retirement system in the Republic of Moldova was implemented, bringing new conditions of retirement, new ways of calculating pensions,\u00a0the equalisation of the retirement age (63 years) and the contribution period (34 years) of women with that of men. Still, <span style=\"color: #993300\">the retirement system\u00a0 is not financially sustainable in the long run\u00a0<\/span>due to fast ageing of the population and the migration of the workforce, as a study conducted by the <em>Friedrich Ebert Stiftung Moldova Foundation<\/em> and the <em>WatchDog.MD Community <\/em>showed<em>.<\/em><\/p>\n<p>The study argued that, over the next few years, there is a risk that fewer people will contribute to the social insurance budget, IPN <a href=\"https:\/\/www.ipn.md\/ro\/sistemul-de-pensionare-din-moldova-este-lipsit-de-sustenabilitate-financiara-stu-7967_1068858.html\">reports<\/a>. Oleg Tofilat, the co-author of the study, noted that the even though the average wage increases, the number of employees remains constant, the black economy is shrinking and the retirement age has been raised, <span style=\"color: #993300\">the contributions to social insurance have decreased<\/span>,\u00a0 as the number of pensioners is rising, while the working population is migrating to other countries.<\/p>\n<p>At the beginning of 2019, there were<strong> 558.4 thousand<\/strong> people aged 60 years and over in Moldova, which represented<strong> 20.8%<\/strong> of the total number of the population.\u00a0The share of people aged 60 or more is constantly increasing, as the NBS <a href=\"https:\/\/statistica.gov.md\/newsview.php?l=ro&amp;idc=168&amp;id=6472\">data<\/a> shows. In\u00a02019, as compared to 2014, the ageing coefficient of the population registered a <strong>3.3 percentage<\/strong> point increase, which corresponds to a <span style=\"color: #993300\">high level of demographic ageing<\/span>. The average age of the Moldovan population hit 38.7 years in 2019, as compared to 37.2 years in 2014.<\/p>\n<p>On the other hand, <strong>159 118 persons<\/strong> left the country, staying abroad at least 9 months cumulatively, according to the data from 2017. More than\u00a0<strong>73%<\/strong> of these people were aged between 20 and 59, according to the NBS <a href=\"https:\/\/statbank.statistica.md\/pxweb\/pxweb\/ro\/20%20Populatia%20si%20procesele%20demografice\/20%20Populatia%20si%20procesele%20demografice__POPrec__POP070\/POP070100rcl.px\/table\/tableViewLayout1\/?rxid=b2ff27d7-0b96-43c9-934b-42e1a2a9a774\">data<\/a>.<\/p>\n<p>**<\/p>\n<p>The pensioners of the Republic of Moldova seem to receive an equitable payment when retiring. However, the aged people of Moldova don&#8217;t have their interests considered and are often marginalised, ignored or even discriminated. For the majority of aged population the received pension is far from being enough for a decent life. A lot of elderly don&#8217;t have enough money for food, medicines, utilities or clothes, all the more for entertainment or travelling. The retirement system is improving, but it is estimated that there will be not enough contributions made by the working force in order to pay the future pensions for the retired people of Moldova. The problem is much more deeper, being connected to some other social phenomena that affect the country, so are the solutions to be found.<\/p>\n<p>Photo: moldova.org<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/what-does-it-mean-to-be-a-retired-person-in-the-republic-of-moldova\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' style=\"font-weight:bold\" ><\/div><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.moldova.org%2Fen%2Fwhat-does-it-mean-to-be-a-retired-person-in-the-republic-of-moldova%2F\" title=\"Facebook\" rel=\"nofollow noopener\" target=\"_blank\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg\" 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