THE IMPACT OF EARLY RETIREMENT ON THE PERFORMANCE OF THE ECONOMY AND THE SUSTAINABILITY OF THE PENSION SYSTEM IN THE CONTEXT OF ESG FACTORS

Abstract

The study investigates how early retirement affects economic performance and the sustainability of the pension system, incorporating environmental, social, and governance (ESG) factors. Using data from the Social Insurance Agency of the Slovak Republic, the Statistical Office, and EUROSTAT, the study applies regression analysis to examine the relationship between early retirement expenditures, GDP, and public finance outcomes. The results reveal a complex but predominantly negative impact: while earlier labor market exits may free jobs and influence productivity, they simultaneously reduce the labor force, weaken economic growth, and increase fiscal pressure on the pension system. These effects have broader social and governance implications, including risks to long-term public finance sustainability and challenges for ESG-aligned policymaking. The findings underscore the need for balanced pension policies that consider demographic trends, economic efficiency, and ESG responsibilities. The study fills a research gap by linking early retirement to ESG dimensions and provides evidence-based insights for future pension reforms and policy development.