The cost of living Index of the retired household, using the components of the target household's consumption basket

Social security systems have become vulnerable during economic crises, increase in the elderly population, inefficiency and slow adjustment in the labor market. When inflation is accompanied by stagnant conditions, the labor market recession and the decrease in asset yield increase the demand for support. Even if stagnant conditions turn into prosperity, it will not have an impact on Those who outside the labor market. Therefore, the only way to avoid poverty is, to adjust their income. The purpose of this study is to determine the cost of living index based on the consumption basket of retired households. This study considers the cost of living index based on the consumption basket of the retired household. The results showed that, due to the higher inflation in the food group and its high share in their total expenditure, this group has a fundamental influence in the trend of the total household expenditure. Due to minimal consumption, a part of the price increase has been adjusted by replacing basic items with lower nutritional value. In the absence of a poverty alleviation program, compensation decline in welfare caused by economic shocks will have doubles pressure on the resources of pension funds. In a situation where there are even two or more generations of recipients for each member of the fund, fund's resources will not be able to cover the living expenses of the pensioners. It is necessary to revision the structure of the social security system.