Abstract
The Republic of Moldova is now facing one of the most difficult periods in the 26 years of its independence as a democratic country. The crisis in the financial system that started in 2014 has gradually spread to all other areas of the state, and with a lack of solutions proposed by the government to improve quality of life, there is apathy and indifference among the country’s population regarding internal sociopolitical problems. These issues have directly impacted the country’s demography, leading to significant changes in the population. In 2014, the proportion of people aged 60 and older was 17.4%, almost equal to the proportion of young people aged 0–14 years, which was 18.2%; these numbers suggest that the future does not look good for the work force. Older adults from Moldova are the poorest age group in the EU, and their life expectancy is comparable to that in the EU at the beginning of the 1990s. The deficit in the social security budget has directly affected pensioners’ well-being. Topics such as active ageing, stigmatization, abuse and violence against old people, and older adults’ quality of life are absent from the political agenda, while the issue of Moldovan migrants and their pension rights has yet to be addressed by legislation. The phenomenon of “ghost villages” is spreading. Soon, Moldova faces the risk of becoming a ghost country of orphan older adults, left behind without support of younger family members who have migrated elsewhere for a better life.
Following the declaration of independence of the Republic of Moldova, the authorities from Chișinău (formerly known as Kishinev) started an armed conflict in 1992 with separatist forces (known as the separatist regime in Transnistria) on the eastern bank of the Dniester River. The war, lost lives, and the contentious relations with Russia caused a powerful economic decline felt until the year 2000 (Costandachi, 2012) . Its impact was mitigated, however, by emigrants who contributed to the economy through remittances, and by foreign aid. The revival of the country’s economy was slow and then became stagnant, partly due to out-migration of the population starting in 1999 (Supplementary Figure 3) (Paladi, Penina, & Dondiuc, n.d.). Thus, in the Republic of Moldova, socioeconomic factors have played a most important role in the aging of the population.
According to a study by the Center of Demographic Research in Moldova, until the year 2020, the number of people who reach the age of retirement will be approximately 100,000, with annual growth of 2.7%–3% (The Academy of Science of Moldova, 2014). The challenges of most concern will be who will pay for the ever-increasing number of pensions, and how will the depopulation process, which leaves behind ghost towns, be stopped. There are currently eight villages in the Republic of Moldova with no population whatsoever. According to the 2014 census of the population, more than 50 other villages are on the brink of disappearing from the map (National Bureau of Statistics [NBS], 2017).
The Demographics of Aging in the Republic of Moldova
The Republic of Moldova finds itself in an unprecedented period of demographic transition, characterized by a decreased birth rate and an increasingly aging population. The demographic situation of this small state, established after the fall of the Soviet Union, started to decline in 1989. Then, 4,335,000 people (including those in Transnistria) were registered, but this number had decreased to only 2,998,000 in 2014 (NBS, 2017). This estimate includes people not covered by the 2014 Census of the population, and without the districts east of the Dniester and Bender city (Table 1). The demographic prognosis of the UN for the Republic of Moldova is one of a continuous shrinking of the population, consistent with a projection, considered the most realistic, of a population of less than 1,856,000 by the year 2100 (Gagauz, 2015).
Population by Age: The Republic of Moldova
| 0–15 years | 16–60 years | 60 years and older | |
|---|---|---|---|
| 1989 censusa | 29.6% | 55.1% | 15.3% |
| 2004 censusa | 19.09% | 61.97% | 14.67% |
| 2014 censusb | 18.2% | 64.3% | 17.4% |
| 0–15 years | 16–60 years | 60 years and older | |
|---|---|---|---|
| 1989 censusa | 29.6% | 55.1% | 15.3% |
| 2004 censusa | 19.09% | 61.97% | 14.67% |
| 2014 censusb | 18.2% | 64.3% | 17.4% |
Population by Age: The Republic of Moldova
| 0–15 years | 16–60 years | 60 years and older | |
|---|---|---|---|
| 1989 censusa | 29.6% | 55.1% | 15.3% |
| 2004 censusa | 19.09% | 61.97% | 14.67% |
| 2014 censusb | 18.2% | 64.3% | 17.4% |
| 0–15 years | 16–60 years | 60 years and older | |
|---|---|---|---|
| 1989 censusa | 29.6% | 55.1% | 15.3% |
| 2004 censusa | 19.09% | 61.97% | 14.67% |
| 2014 censusb | 18.2% | 64.3% | 17.4% |
In the population registered in the most recent census, 48.2% were male and 51.8% were female. Women continue to be predominant, as they have been since 1959, when 1,452,702 women were registered, surpassing men by more than 100,000. At a country level, for every 100 females, there were only 93 males (NBS, 2017).
According to data from the 2014 Census, in the Republic of Moldova, the proportion of people aged 60 and older is 17.4%, almost equal to the proportion of young people aged 0–14 years, which was 18.2%; these numbers suggest that the future does not look good for the work force (Figure 1). In the total population, 61.8% live in the countryside, where 11.5% of the people are 60 or older. The trend toward growth in the aging population in the rural environment is due to poor living standards and lack of employment opportunities that motivate the younger population to migrate to urban areas, both of which influence the birth rate.
Stable population based on age and sex, January 1, 2016. Source: National Bureau of Statistics of the Republic of Moldova.
However, due to unfavorable conditions (in terms of health care facilities and utilities) in rural areas and the high mortality rate, there has not been rapid growth in the aging population. Life expectancy in Moldova is low, at 71.3 years (compared with the regional average of 76.0), approximately the same as it was in Central Europe in 1990. Residents of Western Europe are expected to live on average 9 years longer than residents of Moldova (World Bank Group, 2017). Unlike in the economically developed European countries, the process of demographic aging in the Republic of Moldova is mostly caused by the decrease in fertility, while the decrease in mortality has an insignificant role. Mortality contributes to the aging of the population if two conditions are met: a greater number of people reach old age and, at these ages, life expectancy increases. In the Republic of Moldova, because these two conditions are not met, the dynamic of mortality has not affected the aging of the population (Gagauz, 2012).
The 2014 census also shows population decreases by ethnicity. Among the 18% of the population of the Republic of Moldova who are ethnic minorities, most impacted have been Ukrainians, declining from 13.8% of the population in 1989 to 8.4% in 2004 and 6.5% in 2014, and the Russian population, which decreased from 13% in 1989 to 5.9% in 2004 and 4% in 2014. The population of ethnic minorities overall has decreased by 3.7% compared to 2004. Presently, Moldovans represent 68% of older adults; no statistics are available for other ethnicities based on age. The overlap of the territorial administrative map and that of ethnic population distributions from the 2014 census (see Supplementary Figures 1 and 2) shows that there may be a correlation between ethnicity and aging. This hypothesis requires a more thorough analysis, taking into account factors such as the external and internal migration of the population, in order to precisely determine trends in aging of ethnicities in the Republic of Moldova.
Regarding religious diversity in the Republic of Moldova, the majority are the orthodox—96.8% of the population included in the 2014 census. Religious affiliation is similarly proportional among various age groups, with the number of the religious minorities totaling only a few hundred people (NBS, 2017).
Old-age mortality, especially among men, has not been improving. Although mortality rates for children younger than 5 years have fallen by more than half since 1990 (from 35 to 16 deaths per 1,000 live births), life expectancy at age 60 in 2015 was 16.4 more years, compared with the average of 21.0 in the region, and has not improved since 1990. Healthy life expectancy at birth is even lower, at 62 years in 2013 (World Health Statistics, 2015). The population of older women are more likely to be widows, outliving their partners: widowed older women represent 62.4%, while only 25% of older men are widowers (World Bank Group, 2017). This fact, coupled with the preponderance of older adults living in a rural environment in an agrarian country, leads to a higher degree of dependency and vulnerability of older women, both economically and socially.
The Republic of Moldova is aging unevenly due to the internal economic situation of the country and because of internal migration from both northern and southern cities to Chisinău, which attracts young people looking for learning and employment opportunities (Supplementary Figure 1) (Paladi, Gagauz, & Penina, 2009). Labor migration has affected the male population and the rural environment, as shown by staggering estimates that two out of three people who left/came back are men (67.6% male compared to 32.4% female), and three out of four people (75%) are from the rural environment (NBS, 2013).
As a result, the old-age dependency ratio is projected to triple in the next 45 years. In addition, the current cohort of older adults in Moldova experience a poorer quality of life than the rest of the population, with higher average poverty rates, less access to services, and worse perceptions about their own well-being (World Bank Group, 2017).
Under these conditions, older adults are the segment of the population most vulnerable to poverty. According to a World Bank Group report, Moldova is one of the few countries in the region where the older adults are poorer than the average population. The poverty rate among older adults declined rapidly from 35.0% in 2007 to 13.8% in 2014, bringing the poverty rate closer to but still higher than the national average of 11.4%; the rate in 2014 among older women was 14.7%, compared to 12.3% among older men (World Bank Group, 2017).
Research and Key Researchers on Aging in the Republic of Moldova
The Republic of Moldova is on par with neighboring countries when it comes to research on aging. Interest in studies on this topic increased after the year 2000, along with the first significant changes in the demographic structure of the country, as well as the founding of several national centers focused on the study of demography and aging of the population. Thus, many existing studies speak in general terms about the demographic problems in the Republic of Moldova, presenting data and making forecasts. This comes as no surprise, as demographic decline is among the top 10 most important risks and internal threats, along with poverty and migration, identified by Moldovan experts (Institute of Development and Social Initiatives–IDIS Viitorul, 2017).
Olga Gagauz is the country’s most active researcher on aging, focusing mainly on issues of demographic decline and the challenges it brings to Moldova. One of the most important concepts developed by Gagauz is the so called “window of opportunity.” Unlike nearby Romania, the Republic of Moldova did not see a dramatic baby boom due to communist legislative rulings (Bodogai & Cutler, 2014), although a demographic dividend still exists. It consists of a moderate but significant increase in the birth rate after 1980, with children born during that period reaching working age in 2000. There is thus some potential to mitigate the demographic decline, given the serious situation of aging in Moldova.
Despite not being fully exploited after the 1990s due to a lack of employment caused by socioeconomic transformations, the demographic dividend, when the decrease in the population numbers is accompanied by an increase in the contingent of working age people, is ending. Soon, as all demographic forecasts show, a new stage will begin—depopulation without a demographic dividend: the working age population will continuously decrease, leading to an increase in demographic dependence (Gagauz, 2012).
Apart from general research on demographics, there is also more specific research tackling issues directly tied to common needs of older adults. Currently, a sensitive and actively debated theme involves social security for older persons and the pension system. Valeriu Sainsus, in a series of studies, has analyzed the vulnerability of the Soviet-inspired pension system of the Republic of Moldova and the urgent need to modify it (Sainsus, 2010). Sainsus identifies a series of weaknesses in the pension system, including the early age of retirement (54–55 years old), discriminatory pension calculation methods, indexation of pensions, and large discrepancies among pensions of different social categories. He notes that we are witnessing social segregation of pensioners because the pensions of some social categories were calculated differently than others. As a result, those retired from the academic environment and health care have fallen to the poverty line; the police, justice employees, civil servants, and state dignitaries are privileged; and peasants and agricultural workers are below the poverty line (Sainsus, n.d.).
Directly correlated with the social well-being of the older persons is their access to social services. Researchers from the Institute for Development and Social Initiatives–IDIS Viitorul, coordinated by Olesea Cruc, have highlighted the vulnerability of older adults to age-associated diseases in an analysis of their accessibility to the health care system. In the Republic of Moldova, there are no global statistical data regarding health (morbidity and mortality) of people older than 65 years or their access to health care. Geriatric services offered by the health care system in Moldova are in short supply, and there are no doctors specializing in geriatric care in the country’s districts. The latter role is assumed by physician therapists, who, in the best case scenario, have some additional training in geriatrics (Eţco, Mecineanu, Rotaru & Badan, 2010).
Continuing their focus on social services for older adults, Olga Gagauz and Mariana Buciuceanu-Vrabie bring to the national debate issues that have been widely discussed in the EU related to older persons, but neglected until recently in Moldova. In a study entitled “Active Aging Index in the Republic of Moldova,” Buciuceanu-Vrabie explains calculation of the Active Aging Index (AAI) and its components, based on the methodology developed by the United Nations Economic Commission for Europe (UNECE). In comparing Moldova and the EU countries, she identifies the social, economic, and institutional barriers to active aging in the Republic of Moldova. It should be noted that the Republic of Moldova, and most countries outside the EU, do not participate in the international studies that serve as a methodological base for calculating the AAI. Thus, due to a lack of reliable and continuous statistical evidence in this area, there are barriers to using the original methodology for establishing the AAI. Buciuceanu-Vrabie and her colleagues estimated the AAI based on demographic statistics and on two important studies undertaken by the National Bureau of Statistic (NBS): Labour Force Survey (LFS) and Household Budget Survey (HBS), calculating 9 of the 22 indicators. The results show that the AAI score estimated for the Republic of Moldova is 27.1 (the EU average is 33.9), indicating that more than 70% of people aged 55 years and older lack opportunities to participate in economic and social life, and representing untapped potential for active and healthy aging (Buciuceanu-Vrabie, 2016).
The same researchers conducted a series of quantitative and qualitative studies, outlining the general portrait of the older adults in Moldova. The 2015 study brought issues of discrimination and abuse of older adults to public awareness. Based on quantitative field data, as well as on individual interviews and focus-group discussions, researchers have concluded that about 28% of the older adult respondents have been confronted, at least once, with abuse and violence against them, with the most vulnerable being women from rural areas. Moreover, the study sheds light on several stereotypes related to societal perceptions of older adults, such as “the older people are a burden” or “an exhausted potential.” The study is very useful in understanding the social, cultural, and economic realities for older persons in the Republic of Moldova (Gagauz & Buciuceanu-Vrabie, 2015).
Secondary Data Sets From the Republic of Moldova Used by Researchers
Aside from a set of charts provided by the World Bank and censuses from 1989, 2004, and 2014, there are no reliable data or available statistics for analyzing the situation of the older people in Moldova. The Republic of Moldova is not one of the countries that participate in the International Social Survey Program, SHARE (Survey of Health, Aging and Retirement in Europe, European Union Open Data Portal), or other similar databases. The only sources that are publicly available are the NBS and the Center of Demographic Research and Statistics from the Academy of Sciences of the Republic of Moldova. Another key point is that the last census of the population covered 91% of the population of the entire country and only 59% in Chișinău; the remainder of the statistics was generated by means of dual estimation, which uses a geographic sample of block clusters to find people missed by the census.
Key Public Policy Issues Regarding Aging in the Republic of Moldova
In Moldova, a lot of policy attention is currently focused on older adults. Issues of aging, particularly aging challenges, are brought to the public’s attention by local stakeholders, as well as by international stakeholders, who have devoted considerable effort to addressing older adults’ situation in Moldova. National plans and strategies on the topic of older people are guided by two international programs in which Moldova takes part: the Action Program from the International Conference for Population and Development in Cairo (1994) and the 2002 Madrid International Plan of Action on Aging. In line with this commitment, a series of national strategies to address aging issues have been adopted: the Road Map on Mainstream Aging, the National Program for Integrating the Issues of Aging in Policies (2014–2016), and the National Strategic Program in the field of Demographic Security (2011–2025). However, the Republic of Moldova does not have the necessary institutional framework, nor sufficient financial resources, to achieve all the objectives specified in the two international programs.
In recent years, the attention of political decision makers was focused on policies involving the national pension system. Its reform was seen as urgent due to deficiencies in its functionality that contributed to huge economic discrepancies among different categories of retirees and their resulting well-being. After a long period of neglect by decision makers, a new project to reform the pension system was proposed in December, 2016. This project went into effect in 2017, promising to ensure both sustainability of the system as well as acceptance by the people.
The “Pay As You Go” model is characteristic of the pension system in Moldova. Starting in 1990, when the social security system was paralyzed by the fall of the Soviet Union, through 1998, when the first reform of the pension system began, Moldova had a Soviet pension model. With help from the World Bank and the EU, the reforms of 1998 aimed to achieve two goals: a guaranteed minimum, or base pension, and a pension based on the years of employment. These reforms might have been expanded to accommodate an increase in pensions and in the age of retirement to 65 years in both men and women (Antonov, Solonari, & Cruc, 2010). However, the latter provision was subsequently dropped, reverting to a retirement age of 57 for women and 62 for men, and the required length of contribution remained 30 years, for both men and women. The issue of retirement age was frequently raised in public discourse over the following years due to dramatic changes in the country’s economic state and the rising budget deficit.
Thus, neither the 1998 reforms, nor attempts to implement subsequent reforms, have managed to resolve the main issues plaguing the pension system in Moldova. The discriminatory and opaque system of calculating pensions caused social inequalities and underestimated the value of income of people who reached retirement age before 1998 compared to those who did so after 1998. The use of an anachronistic formula that did not properly account for the importance and value of the work done while the country was part of the Soviet Union led to large discrepancies in pension amounts for those in the agricultural and academic fields and civil servants. The indexation of pensions created a large discrepancy between the pensions for old age and those for years of employment. In addition, the system penalized women due to the gender wage gap (Sainsus, 2010). According to NBS, 72% of pensions go to men, and the average pension received by women in 2014 was 76% of that of men (World Bank Group, 2017).
The biggest problem, though, is still the monetary value of the pensions (Table 2), which does not ensure even the minimum needed for survival for those retired in Moldova. The decrease in the number of employees who contribute to the pension system, coupled with the increase in the number of retired people, caused the pension budget to reach a critical state and led to a deficit. This was made more problematic with addition of pensions for people who take early retirement due to illness (Sainsus, 2010). In other words, to be old in the Republic of Moldova means, most of the time, to be poor.
Average Size of Awarded Monthly Pension of the Those Registered at the Organs of Social Insurance of Population, as of January 1
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|
| Average size of awarded monthly pensiona, of which: | 35 | 43 | 44 | 48 | 52 | 56 | 60 | 64 |
| Age pension | 37 | 44 | 46 | 49 | 54 | 58 | 61 | 65 |
| Disability pension | 31 | 37 | 38 | 40 | 44 | 46 | 49 | 52 |
| Survivor’s pension (for every disabled member of family) | 20 | 24 | 25 | 25 | 28 | 30 | 31 | 33 |
| Agriculture sector employees | 38 | 39 | 42 | 46 | 47 | 49 | 52 | 55 |
| Nonagricultural sector employees | 38 | 46 | 48 | 52 | 59 | 63 | 67 | 71 |
| Women | 34 | 41 | 43 | 46 | 55 | 58 | 61 | 65 |
| Men | 38 | 45 | 47 | 51 | 71 | 76 | 82 | 87 |
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|
| Average size of awarded monthly pensiona, of which: | 35 | 43 | 44 | 48 | 52 | 56 | 60 | 64 |
| Age pension | 37 | 44 | 46 | 49 | 54 | 58 | 61 | 65 |
| Disability pension | 31 | 37 | 38 | 40 | 44 | 46 | 49 | 52 |
| Survivor’s pension (for every disabled member of family) | 20 | 24 | 25 | 25 | 28 | 30 | 31 | 33 |
| Agriculture sector employees | 38 | 39 | 42 | 46 | 47 | 49 | 52 | 55 |
| Nonagricultural sector employees | 38 | 46 | 48 | 52 | 59 | 63 | 67 | 71 |
| Women | 34 | 41 | 43 | 46 | 55 | 58 | 61 | 65 |
| Men | 38 | 45 | 47 | 51 | 71 | 76 | 82 | 87 |
Note: The USD income is calculated approximately by conversion from MDL to USD, using the exchange rate on June 22, 2017.
aSource: National Bureau of Statistics of the Republic of Moldova (2017).
Average Size of Awarded Monthly Pension of the Those Registered at the Organs of Social Insurance of Population, as of January 1
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|
| Average size of awarded monthly pensiona, of which: | 35 | 43 | 44 | 48 | 52 | 56 | 60 | 64 |
| Age pension | 37 | 44 | 46 | 49 | 54 | 58 | 61 | 65 |
| Disability pension | 31 | 37 | 38 | 40 | 44 | 46 | 49 | 52 |
| Survivor’s pension (for every disabled member of family) | 20 | 24 | 25 | 25 | 28 | 30 | 31 | 33 |
| Agriculture sector employees | 38 | 39 | 42 | 46 | 47 | 49 | 52 | 55 |
| Nonagricultural sector employees | 38 | 46 | 48 | 52 | 59 | 63 | 67 | 71 |
| Women | 34 | 41 | 43 | 46 | 55 | 58 | 61 | 65 |
| Men | 38 | 45 | 47 | 51 | 71 | 76 | 82 | 87 |
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|
| Average size of awarded monthly pensiona, of which: | 35 | 43 | 44 | 48 | 52 | 56 | 60 | 64 |
| Age pension | 37 | 44 | 46 | 49 | 54 | 58 | 61 | 65 |
| Disability pension | 31 | 37 | 38 | 40 | 44 | 46 | 49 | 52 |
| Survivor’s pension (for every disabled member of family) | 20 | 24 | 25 | 25 | 28 | 30 | 31 | 33 |
| Agriculture sector employees | 38 | 39 | 42 | 46 | 47 | 49 | 52 | 55 |
| Nonagricultural sector employees | 38 | 46 | 48 | 52 | 59 | 63 | 67 | 71 |
| Women | 34 | 41 | 43 | 46 | 55 | 58 | 61 | 65 |
| Men | 38 | 45 | 47 | 51 | 71 | 76 | 82 | 87 |
Note: The USD income is calculated approximately by conversion from MDL to USD, using the exchange rate on June 22, 2017.
aSource: National Bureau of Statistics of the Republic of Moldova (2017).
Legislation regarding pension reform, which went into effect on April 1, 2017, proposes a series of changes to address the biggest challenges in Moldova: the small number of taxpayers, quotas for social contributions to the pension system, differing retirement ages, aging of the population, the migration of the work force, inequitable retirement conditions, and the effects of the informal economy and undeclared work.
As a result, the age of retirement will be increased gradually by 6 months a year for women and 4 months a year for men, until age 63 for both men (who will reach the new threshold on July 1, 2019) and women (July 1, 2028). The stage of contribution (the period during which the taxpayer pays social security taxes) is uniform and increases to 34 years. The amount of the pension is based on the taxes paid by the beneficiary; privileges held by some social categories—members of parliament, government officials, civil servants, judges, etc.—will be eliminated by calculating their pension in the same manner as other taxpayers. There are currently two minimum pensions—one for farmers (approximately 46 USD) and one for those employed in the national economy (approximately 52 USD), but beginning in 2017, the minimum pension will be equal to minimum wage (currently set by law at approximately 115 USD) (Pîntea, 2016).
An innovative element of these reforms grants the right to advance pension eligibility by 3 years (age 60 years for men and women), after achieving a stage of contribution of 34 years. People who continue to work after the pension is set will benefit from a pension updated every 2 years. This provision is welcome, especially since statistics show that 51% of retirees do not remain employed for more than a year, so this may encourage pensioners to continue to be employed.
Emerging Issues Regarding Aging in the Republic of Moldova
The Republic of Moldova is currently in the second stage of aging, changing from progressive aging to regressive aging. In the next 30–40 years, pensioners may become a most vulnerable social segment. By 2050, it is forecast that every third person in the Republic of Moldova will be older than 60 (Table 3).
Number of Pensioners, as of January 1 (N = 1,000)
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|
| Totala | 639.4 | 643.4 | 646.7 | 658.4 | 670.1 | 679.9 | 690.2 | 700.2 |
| Registered at the social security authorities | 621.4 | 624.6 | 627.1 | 638.3 | 649.9 | 659.6 | 669.9 | 679.9 |
| Receiving pension due to age | 455.2 | 457.9 | 460.5 | 473.1 | 484.5 | 495.9 | 507.5 | 518.8 |
| Receiving pension for disability | 131.3 | 133.3 | 134.3 | 135.8 | 136.5 | 136.4 | 136.7 | 136.3 |
| Receiving pension after the loss of bread-winner | 26.3 | 24.9 | 23.7 | 20.6 | 20.0 | 18.4 | 16.6 | 15.4 |
| Receiving pension for work experience | 8.6 | 8.5 | 8.6 | 8.8 | 8.9 | 8.9 | 9.1 | 9.4 |
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|
| Totala | 639.4 | 643.4 | 646.7 | 658.4 | 670.1 | 679.9 | 690.2 | 700.2 |
| Registered at the social security authorities | 621.4 | 624.6 | 627.1 | 638.3 | 649.9 | 659.6 | 669.9 | 679.9 |
| Receiving pension due to age | 455.2 | 457.9 | 460.5 | 473.1 | 484.5 | 495.9 | 507.5 | 518.8 |
| Receiving pension for disability | 131.3 | 133.3 | 134.3 | 135.8 | 136.5 | 136.4 | 136.7 | 136.3 |
| Receiving pension after the loss of bread-winner | 26.3 | 24.9 | 23.7 | 20.6 | 20.0 | 18.4 | 16.6 | 15.4 |
| Receiving pension for work experience | 8.6 | 8.5 | 8.6 | 8.8 | 8.9 | 8.9 | 9.1 | 9.4 |
Note:aSource: National Bureau of Statistics of the Republic of Moldova (2017).
Number of Pensioners, as of January 1 (N = 1,000)
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|
| Totala | 639.4 | 643.4 | 646.7 | 658.4 | 670.1 | 679.9 | 690.2 | 700.2 |
| Registered at the social security authorities | 621.4 | 624.6 | 627.1 | 638.3 | 649.9 | 659.6 | 669.9 | 679.9 |
| Receiving pension due to age | 455.2 | 457.9 | 460.5 | 473.1 | 484.5 | 495.9 | 507.5 | 518.8 |
| Receiving pension for disability | 131.3 | 133.3 | 134.3 | 135.8 | 136.5 | 136.4 | 136.7 | 136.3 |
| Receiving pension after the loss of bread-winner | 26.3 | 24.9 | 23.7 | 20.6 | 20.0 | 18.4 | 16.6 | 15.4 |
| Receiving pension for work experience | 8.6 | 8.5 | 8.6 | 8.8 | 8.9 | 8.9 | 9.1 | 9.4 |
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|
| Totala | 639.4 | 643.4 | 646.7 | 658.4 | 670.1 | 679.9 | 690.2 | 700.2 |
| Registered at the social security authorities | 621.4 | 624.6 | 627.1 | 638.3 | 649.9 | 659.6 | 669.9 | 679.9 |
| Receiving pension due to age | 455.2 | 457.9 | 460.5 | 473.1 | 484.5 | 495.9 | 507.5 | 518.8 |
| Receiving pension for disability | 131.3 | 133.3 | 134.3 | 135.8 | 136.5 | 136.4 | 136.7 | 136.3 |
| Receiving pension after the loss of bread-winner | 26.3 | 24.9 | 23.7 | 20.6 | 20.0 | 18.4 | 16.6 | 15.4 |
| Receiving pension for work experience | 8.6 | 8.5 | 8.6 | 8.8 | 8.9 | 8.9 | 9.1 | 9.4 |
Note:aSource: National Bureau of Statistics of the Republic of Moldova (2017).
Moldova is already a few years into having the deficit in the social security budget covered by the state budget. The ratio between taxpayers and pensioners is at 1.24, a very high level of the adult dependency ratio (ratio of inactive to active adults) compared to other states in the region (see Table 4) (World Bank Group, 2017).
Indices of Demographic Dependence (as of January 1; per 100 Individuals of Working Age)
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|
| Number of persons unable to work—totala | 51.7 | 50.3 | 50.3 | 49.9 | 50.2 | 50.7 | 51.5 | 52.4 | 53.6 |
| Number of persons under the working age | 29.2 | 28.2 | 27.4 | 26.7 | 26.3 | 26.1 | 26.0 | 26.0 | 26.2 |
| Number of persons over the working age | 22.5 | 22.7 | 22.9 | 23.2 | 23.9 | 24.6 | 25.5 | 26.4 | 27.4 |
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|
| Number of persons unable to work—totala | 51.7 | 50.3 | 50.3 | 49.9 | 50.2 | 50.7 | 51.5 | 52.4 | 53.6 |
| Number of persons under the working age | 29.2 | 28.2 | 27.4 | 26.7 | 26.3 | 26.1 | 26.0 | 26.0 | 26.2 |
| Number of persons over the working age | 22.5 | 22.7 | 22.9 | 23.2 | 23.9 | 24.6 | 25.5 | 26.4 | 27.4 |
Note:aSource: National Bureau of Statistics of the Republic of Moldova (2017).
Indices of Demographic Dependence (as of January 1; per 100 Individuals of Working Age)
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|
| Number of persons unable to work—totala | 51.7 | 50.3 | 50.3 | 49.9 | 50.2 | 50.7 | 51.5 | 52.4 | 53.6 |
| Number of persons under the working age | 29.2 | 28.2 | 27.4 | 26.7 | 26.3 | 26.1 | 26.0 | 26.0 | 26.2 |
| Number of persons over the working age | 22.5 | 22.7 | 22.9 | 23.2 | 23.9 | 24.6 | 25.5 | 26.4 | 27.4 |
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|
| Number of persons unable to work—totala | 51.7 | 50.3 | 50.3 | 49.9 | 50.2 | 50.7 | 51.5 | 52.4 | 53.6 |
| Number of persons under the working age | 29.2 | 28.2 | 27.4 | 26.7 | 26.3 | 26.1 | 26.0 | 26.0 | 26.2 |
| Number of persons over the working age | 22.5 | 22.7 | 22.9 | 23.2 | 23.9 | 24.6 | 25.5 | 26.4 | 27.4 |
Note:aSource: National Bureau of Statistics of the Republic of Moldova (2017).
This phenomenon is directly correlated with the social well-being of older adults, with Moldova among the last countries in Europe where older adults are poorer than the average population. Pension system reform, by equalizing the amount of the minimum pension with minimum wage, might slowly reduce the impoverishment of older persons, but without a sustainable economy, this reform will not have the desired result. Moreover, the enacted reforms did not provide a stimulus for developing additional pillars of the pension system (mandatory private pensions: pillar II and optional private pensions: pillar III). Without these provisions, many experts believe that long-term sustainability of the pension system cannot be ensured under the strain of progressive migration and decreased numbers of taxpayers in the social security system (Pîntea, 2017).
Furthermore, neither the pension reforms nor other legislative projects have touched the issue of Moldovan migrants. Those who left to work abroad are not entitled to pension rights in Moldova because they do not pay social security taxes. Those who decide to return and work in Moldova might not receive full pension rights, depending on the total period of time they contributed to the national pension system.
Moldova does not have laws to protect its citizens working abroad and allow them to make social security contributions, except under bilateral agreements signed with some former Soviet countries after the fall of the Soviet Union, such as the Russian Federation, Belarus, Ukraine, Uzbekistan and Azerbaijan, and a few other European countries, including Romania, Bulgaria, and Portugal, under the European Convention of Social Security (Moldova’s Governmental Decision 1170/2007).
There is an urgent need to include the social security system in legislative reforms addressing workforce migration and the right to retire. Otherwise, Moldova risks serious social fissures in the next 10 years; the start of returning waves of black-market workers with no right to a pension abroad is one of these. Most of these people will not have a right to a pension in the Republic of Moldova either, which will require the state to ensure their livelihood with urgent measures of social assistance (Cantarji & Vladicescu, 2011).
Because of the current social security system’s lack of sustainability, some experts hope that future economic development makes it possible for the country to keep older people active in the work force for a longer period of time. For that to happen, there is great need for policy changes, given the currently insufficient stimulus to maintain older people in the work force. Moreover, due to poverty and precarious living conditions, their health situation does not allow a great number of older adults to work; recent data show that about 71% of them suffer from chronic diseases, particularly cardiovascular or osteoarticular infections and digestive problems (World Bank Report, 2017).
Another noteworthy development is the feminization of aging in the Republic of Moldova. Gender asymmetry at old age leads to gender asymmetry among pension beneficiaries, the majority of whom are women. The pension disparity between women and men, as mentioned above, reflects a gender gap, and increasing the age of retirement as a result of the new reforms will not resolve this issue. The root of it stems from the length of contributions to the social security system, which women, with limited participation in the labor force, have difficulty reaching. This is an important subject that needs more consideration.
The great distance between existing aging policy in the Republic of Moldova and the goals undertaken as part of the two international programs from Cairo and Madrid make evident that there is still a lot to be done so that older adults in Moldova can live a decent life (Gagauz & Rojco, 2015). Basics such as the availability of medical services (physical, financial, and qualitative), especially for the rural population; opportunities for lengthening the duration of economic activity and the prevention of early retirement; modification of the living environment to ensure the safety of older people (infrastructure, transport, building codes, etc.); aspects to promote an autonomous way of life; and a social environment lacking violence, abuse, and discrimination against old adults are missing from the political agenda of the country, avoided by political decision makers or overshadowed by other important issues.
This trend can also be seen in the key aging research undertaken in Moldova, which focuses to a great extent on issues regarding the basic needs of the older adults and demographic decline, and much less on topics such as active aging, stigmatization, abuse and violence against older people, and their quality of life. These concerns are directly tied to the difficult economic state of the country, and currently all forecasts regarding this are negative. If the current economic, social, and political situation is not addressed and their effects on older adults continue to be a low priority, Moldova risks becoming a country with orphan older adults, living in poverty and left behind without family support, sooner than expected.
Supplementary Data
Supplementary data are available at The Gerontologist online.
Funding
None reported.
Acknowledgments
We wish to thank our colleagues from the University of Bucharest, especially Cosima Rughiniș and Vlad Grigoraș, for their valuable comments and suggestions on this manuscript. We also thank Șerban Constantin, Mihai Bârsan, Andra Ivănescu, and Anca Barcu for supporting us by editing the final paper. Particularly, Miriam Rose’s contribution is sincerely appreciated and gratefully acknowledged. We give special thanks to Stephen J. Cutler, our advisor, for his invaluable feedback and guidance, which helped our work come to fruition.
Conflict of Interest
None reported.
