The modelling and simulation of the pension system

The reform of the pension system is a cardinal and noteworthy subject in all countries of the European Union and it is often discussed in various scientific meetings. These economic and social challenges necessitate long-term government strategies, which need to be modelled, simulated (tested and verified). The following exploration describes the present pillars of the Hungarian pension system and goes into detail about the problems of the mandatory social insurance system, using demographic and statistical data. The main objective of this essay is to present a possible scenario of changes in the pension benefits in Hungary. The study is based on statistical projections but also includes the results of a questionnaire-based behavioural research project, and a presentation of predicted pension expenses and pension levels in Hungary. The study consists of three parts. The first part summarizes the theoretical planning process of modelling. The second part presents the pillars of the Hungarian pension system and the achievements of pension modelling. The third part summarizes the theoretical basics and results of the research project “The impact assessment of the pension system”.