Abstract:
The paper presents some results of the analysis of the Life Cycle Deficit (LCD) of the population aged 60 and over, based on the data frame of the National Transfer Accounts (NTA) for 2019. Based on age profiles of aggregate data is attested that the LCD of the elderly population in Moldova is about 41% of the LCD of all ages. The primary sources of livelihood for the elderly are not so much income from work but public transfers (payments for social
programs, including pensions, healthcare and social services) – 37.8%. Redistribution of private asset-based reallocations plays a fairly significant role in financing the consumption of older people (30.7% of consumption). Along with advancing age, the economic activity of the population inevitably decreases. During the pre-retirement period, the self-employment labor income remains to have a special role in supplementing incomes and becoming the only source after age 75. People aged 60-75 continue to be donors in intergenerational transfers. Only after
the age of 75+, do the elderly become recipients of private transfers. A gender characteristic is that older women remain the main beneficiaries of private transfers due to higher life expectancy. The aging of the population will accelerate in the coming decades, according to forecasts. Therefore, the share of the economically dependent population and the LCD will increase. More vigorous policy efforts are required to improve productivity and increase the potential of the working-age population, including by ensuring active and healthy aging and
social security for the elderly. The article was elaborated within the State Program Project (2020-2023) 20.80009.0807.21 „Migration, demographic changes, and situation stabilization policies”.
