Formation of accumulative component of general mandatory state pension insurance as a direction of pension system reform

Abstract

For more than thirty years, the problem of achieving an adequate level of pension benefits for citizens of Ukraine remains extremely relevant. Unfortunately, the current socio-economic and military-political situation indicates only a deterioration in the factors influencing the national pension system. The article analyzes the negative factors influencing the pension system, in particular the solidarity component. Thus, in recent years, the demographic situation in Ukraine has only worsened, as along with the natural processes of population depopulation, labor migration abroad continues, which, unfortunately, was supplemented by waves of refugees with the beginning of the war. The processes of de-shadowing of the economy, in particular the labor market, are also rather slow and inconsistent. Thus, in some sectors, about half of the workers may be informally employed. The pace of economic growth and the development of financial sector instruments have also not been very encouraging in recent years. Therefore, it is pointed out that all these factors have an extremely negative impact on the functioning of the joint pension system, moreover, for its financial stability, a significant share of funds from the state budget is redistributed annually. However, despite such significant financial costs, the level of adequacy of benefits for most retirees is extremely low. It is noted that one of the effective options to improve the level of pension provision of citizens is the introduction of a mandatory funded pension system, which in its content is designed: first - to supplement pension benefits to participants, and secondly - to diversify the risks of material impoverishment of such persons old age. The article analyzes the existing scenario for the introduction of such an accumulative component and the relevant government bill. The main advantages of the proposed system of mandatory pension capitalization are highlighted, as well as the main threats that may arise if it is implemented in its original form. Based on the results of the analysis, appropriate conclusions and recommendations were made.