Actuarial technics and applications about individual pension

There is a direct relation between the economic development of a country and theoperatibility and complexity of its financial systems. The financial system has a valuablefunction in an economic system: Transferring funds into economic units with investmentoptions from units with no productive investment options.Actuary covers, in general terms, the insurance technique in a financial system andrelevant investment, financing and demographic issues, as well as the preparation oftariffs and technical principles by calculating the legally permitted premium reservesand profit rates against the coverages provided for risks such as fire, storm, sicknesses,etc. through the application of probability and statistics theories. It is used in thecalculation of the tariff of all risks in the insurance sector.In this paper, we will focus on reforms in the social security system, the individualpension system and actuarial techniques. Individual pension system is a system thatenables individuals to both invest in their future and contribute in the development ofcapital in their countries. As in all decision-making processes, it is extremely essentialfor the success of the decision-making process regarding individual pension system thatan evaluation and feed-back mechanism be established to assess the results produced bythe system once it will be fully applied in the market. Here, we will focus on the successobtained throupgh the investment process of individual pension funds and whether theexpectations (with respect to revenues, in particular) have been met.