Aging population and the ambition to sustain the relative living standards of the retired is a test of sustainability for pension system, both private and publicly financed schemes. Therefore, this report should be regarded as an initial study that sets the basis for a more thorough and systematic analysis of functioning of the public pension scheme of Macedonia and its findings should be regarded in that light. Main source of data used were obtained from the State Statistical Office-SSO, Pension and Disability Insurance Fund of Macedonia-PDIFM, National Bank, and Eurostat.