Abstract
The ongoing distribution of the pension system is on the threshold of losing its sustainability, financially, which has produced a deficit in the budget of the Pension Fund of the Russian Federation and the deflection of pension funds to the distribution system in 2014. This situation was to some extent caused by demographic risks. Funded systems could become the main instrument for mitigating the demographic problem of the distribution pension system. But the problem is, these systems are unprotected to demographic risks as well.The paper examines the effect of demographic uncertainty on funded pension systems. It describes the process necessary for the financial sustainability of a funded pension system under the force of demographic and macroeconomic factors. It explores the conformity of Russian funded pension systems and that of OECD countries with the status of financial sustainability in the time from 1958 to 2012, making a prognosis for the financial viability prospects.
Highlights
Demographic risks of a benefits framework are heterogeneous and and again include not just demographic factors
The impact of demographic risks on pension systems is estimated by considering their impact on such indicators as pension payments and replacement rate
This study of financial sustainability of distribution pension systems was based on the described systems Nepp (2017)
Summary
Demographic risks of a benefits framework are heterogeneous and and again include not just demographic factors. The examination of statistic dangers partitions all annuity frameworks into two gatherings: subsidized and dispersion (unfunded) benefits frameworks. Dispersion benefits frameworks are affected by statistic dangers to a more noteworthy degree. The impact of demographic risks on pension systems is estimated by considering their impact on such indicators as pension payments and replacement rate. ▪ In these countries pension contributions to the distribution pension systems are separated from the overall amount of taxes or mandatory insurance premiums;. ▪ Pension contributions to the pension system in these countries are separated from the overall amount of taxes or mandatory insurance premiums; As a result, the research sample comprised Australia, Austria, Great Britain, Hungary, Germany, Italy, Canada, Luxembourg, Mexico, the Netherlands, Norway, Poland, Slovakia, USA, the Czech Republic, France, Switzerland, Sweden, Japan, Russia, on average in the OECD countries
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