Social protection of older people and the structure of consumption expenditure in countries of Central and Eastern Europe

Abstract

The adequacy of a pension system, from the viewpoint of retired people, is given by the amount of the benefits and by the consumption smoothing. In this paper, we have made a comparative study regarding the consumption structure of older people in five countries from Central and Eastern Europe, where the public pension system is the main pillar providing income security and protection against old age poverty. Considering 2005 as the reference year, the differences of mean consumption expenditure in Czech Republic, Hungary, Poland, Romania and Slovakia before and after retirement had significantly decreased. Regarding the structure of consumption expenditure, the largest share of expenditure is made for housing, food and non-alcoholic beverages. After 60 years old the share of expenditures made to recreation, culture and health increases, highlighting the particular needs of the elderly.