The article analyses the distribution pension system impact on birth rate as a part of the demographic situation. The research methodology is an Austrian economic school methodology: apriorism, methodological individualism, subjectivism, researching the economic processes in the real time and the theory of capital as intermediate goods.
The working hypothesis of the article is the statement that the distribution pension system is a demographic crisis reason in the countries where it was introduced. These countries inevitably see the birth rate decrease; the fertility coefficient is reducing and eventually results in demographic recession.
Keywords: Pension system, demographic recession, demographic crisis, birth rate decline, population decline.