Institute for strategic studies and prognoses proposes measures for the reform of pension system in Montenegro. In its short analysis, the ISSP proposes to stop connecting the amount of the average wage and pension, and thus the growth of wages that would not automatically create deficit in the pension fund would be allowed. The Institute proposes reduction of the minimal pension, revision of working ability of invalids of work, alteration of the formula for calculation of the pensions, rationalization of the benefited category of pensioners and other social allowances. In the comment, the Institute reminds that average pension in Montenegro is 94% of the average wage, and compares this situation with Slovenia, where the pension makes 68% of the average wage, in Czech Republic 49%, Poland 55%, Hungary 58% and in Macedonia 60%. “At present, 2.39 workers need to pay their taxes on their wages for one pensioner in order to fully pay the pensions,” states the comment of ISSP and adds that at the moment, only 1.73 workers paid their share to the Fund of pension and invalid insurance. “The necessary financial means are mostly provided from diverted means of the budget from special taxes, commissions for financial transactions and donations of the international community,” claims ISSP. The Institute estimates that increase of taxes on wages or increase in age necessary for fulfilling the conditions for the right to pension would have negative consequences on economy and its revitalization. They propose the establishing of the opportunity for each employed person to pay its own allowance to private and public funds. However, as they state, USAID experts think that it is too early for implementation of such measures since financial market in Montenegro is not organized enough and it has not a sufficient number of young people paying their allowances for pensions. “The system of funds entails pension allowances in direct reciprocity with their investment. The growth of registered persons who register their wages would be in line with possibilities that include not only taxing, but saving as well”.