Non-State Pension Provision in Ukraine: Identification of Threats and Challenges

Abstract

Under modern conditions, the state of the pension system is critically problematic, complex, and non-transparent in terms of financial flows, social justice, and security. The purpose of the article is to substantiate the main security threats to the subjects of non-state pension provision in Ukraine. The essence of risk in the system of non-state pension provision is revealed and their structuring is suggested (inefficient diversification of pension assets into profitable financial instruments, probability of loss of funds due to the poor investment of non-state pension funds; small amounts of financial resources of non-state pension funds). Security challenges to the subjects of non-state pension provision are singled out and substantiated (ineffective reforms in the financial and economic sphere; global crisis processes; legal contradictions in the regulation of financial and economic relations; deficit of internal financial resources of the state; aging of the nation with an increasing number of pensioners) The threats to the activities of non-state pension providers are explained as a set of actions, conditions, and factors that create a situation that is dangerous for an individual entity, destructively affecting the non-state pension system. The classification of security threats to the subjects of non-state pension provision has been developed: the place of origin (external and internal); the degree of openness to the non-state pension fund obvious, due to market (economic and legal) laws; latent (implicit); there is a loss of a significant part of the material and financial resources, significant – the loss of competitive advantage, and it is impossible to continue the activities of pension provision. Based on the analysis, it is determined that depending on various factors, the threats that impact the security of a particular non-state pension fund may change. Further research should focus on the features of a risk-based approach for non-state pension providers