Pension Systems and Old-Age Income Support in East and Southeast Asia

Old-age income support is becoming an issue of growing importance throughout Asia. This is especially true in East and Southeast Asia where the population is aging. This paper provides a broad overview of the current state of pension systems in the People’s Republic of China, Indonesia, Republic of Korea, Malaysia, Philippines, Singapore, Thailand, and Viet Nam; analyzes the pension systems; and identifies their major structural weaknesses. The paper concludes with some specific policy directions for pension reform to strengthen the capacity of Asian pension systems in delivering economic security for the large and growing population of elderly looming on the region’s horizon.

Natia Kakhniashvili E-mail: Natia.kakhniashvili@tsu.ge Doctor of Business Administration Iv. Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0009-0004-0759-198X Khatuna Barbakadze E-mail: Khatuna.barbakadze@tsu.ge Candidate of Economic Sciences Iv. Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0009-0001-1670-8463 Nato Kakashvili E-mail: Nato.kakashvili@tsu.ge Candidate of Economic Sciences Iv. Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0009-0005-1399-1784 Abstract. Pension policy is a critical component of a state's social policy. Current global trends, particularly those associated with population aging, have heightened the need for effective pension system reforms. The stability and efficiency of pension systems are vital elements of a society's social welfare infrastructure, ensuring financial support for retirees and promoting their well-being in old age. However, pension systems face significant challenges due to demographic shifts, economic fluctuations, and evolving societal expectations. Traditional pension systems often struggle to fully meet the needs of retirees, and many existing schemes experience substantial volatility, jeopardizing their long-term sustainability. As a result, the need for pension system reform has become increasingly urgent. To address these challenges, states must implement more comprehensive reforms aimed at effectively modernizing their pension systems. Pension reform refers to the process by which a government or employer makes substantial changes to the structure, policies, and regulations governing pension benefits. Successful reforms typically require thorough analysis, consultation with stakeholders, and legislative action to ensure effective implementation. The pension system of Georgia has undergone several important stages of reform in recent decades. After gaining independence, the country implemented socio-economic transformations, which were accompanied by demographic aging and shifts in labor market dynamics. These changes underscored the need for reforms in the pension system. The pension system faces several significant challenges. Foremost among these is the demographic trend of an aging population coupled with a declining birth rate, which poses a serious threat to the long-term sustainability of the system. Additionally, the expanding informal labor market and high unemployment levels further complicate the situation, creating obstacles that could undermine the stability of pension benefits for future retirees. Addressing these fiscal challenges requires the implementation of innovative policies that ensure adequate retirement income for citizens while maintaining the system's viability. The reform of the pension system requires the joint participation of the government and society. The government should strengthen supervision and management, create an effective management and supervision mechanism of the pension system. Pension system reform is complex. Different countries have different levels of economic development, demographic structure, social security system, etc. Key words: pension system, reform, efficiency, risks, modernization. JEL classification: H 55, J1

The aim of this article is to define the legislationAzerbaijan state social security pension system and latest reforms, influenced by the recent economic crisis and demographic – social challenges, and to provide with the conclusionsin the state social guarantees context. In this paper author analyses challenges and presents conclusions and recommendations for further pension system reforms in Azerbaijan.

The contemporary global debate about pension reforms is based mainly on the concern for the long-term financial viability of existing government operated pension systems. Against this background, Nigeria, Sweden and Chile responded to the challenges posed by their pension systems by initiating reforms. While Chile and Nigeria completely moved from a defined benefit system to a defined contribution system, Sweden chose a “hybrid”, a model which has received wide acclaim by social security experts. Given the interest pension systems and reforms have generated globally as well as in Nigeria, a cross-country comparative analysis is imperative to bring into sharp focus the specific differences and similarities in these three pension reforms if any. Thus, this study comparatively evaluates the Nigerian, Swedish and Chilean pension reforms as a means of enriching ongoing global debate and crosscountry comparisons on pension reform experiences. Guided by a three dimensional classification framework which describes the options available in reforming a pension system, three core benchmarks were used for this comparative analysis. These are the objective(s) of reform, the model of reform adopted, and the likely outcomes of reform vis-a-vis meeting the redistribution, saving and insurance functions of a pension scheme. Results indicate that the Chilean and Nigerian models are less likely to achieve the redistribution and insurance functions of a pension scheme while the Swedish model is better placed to achieve all the three key functions of a pension system. It is recommended that opportunities for achieving the redistribution and social insurance functions of a pension scheme should be explored in subsequent amendments to the pension legislation. Keywords : Demographic crisis, Pension reform, Public policy

The aim of this article is to define the Japanese, South Korean and Lithuanian latest pension system reforms and measures during economic crisis. Problems of the Japanese, S. Korean and Lithuanian pension systems are similar to the others industrial Asian or European Union countries: ageing, impact of economic crisis and pension system budget deficit. Moreover, the Japanese, S. Korean and Lithuanian population ageing rapidly (low birth rate, longer life expectancy) and it influences the entire society and requires more complex and pressing pension systems reforms. All countries of the world fighting against the ageing and searching for the pension system financial sustainability. After the universal pension system reform in 1985, the task of Japanese government is to ensure for each participant an adequate and regular pension income, to implement the social justice and solidarity. Pension system reforms in S. Korea began intensively only since 1997 and this was associated with a global currency crisis. Since the end of the last century until 2009, S. Korean government has developed a modern social security and social assistance systems. The government is constantly increasing social security coverage and benefits (from 1999 to 2009, social benefits increased almost four times). However, the social security coverage is still insufficient, income disparities increasing and the financial disbalances require to reform the pension system for a long-term perspective. The pension system reform of 2003 and 2011 raised the wide discussion on the state social pension insurance system future development of Lithuania. This reform clearly demonstrates that the government in 2003 opted for a liberal position and in 2011 – it was decided to strengthen state social insurance guarantees. KEY WORDS: pension system, reform, crisis, ageing, Japan, S. Korea, Lithuania.

As Pension fund system is a cornerstone of countries economy, policymakers across the globe are still discussing about universal effective pension fund systems and struggling to implement and fit it to the country’s economy demography and financial system. From this point the main objective of this research topic was to test the effectiveness of new pension system reform in Georgia. It focuses on whether the reform will have positive effects on tackling poverty among elderly and bring to Georgian people real prosperity. The pension fund system represents the essential part of the economic policy. Moreover, it defines the social and political stability and future the development of the state economies. By other words, the simple objective of the pension system is to pay pensions to workers in their old ages and to protect elderly against the risk of poverty. As Pension fund system is a cornerstone of countries economy, policymakers across the globe are still discussing about universal effective pension fund systems and struggling to implement and fit it to the country’s economy demography and financial system. From this point the main objective of this research topic was to test the effectiveness of new pension system reform in Georgia. It focuses on whether the reform will have positive effects on tackling poverty among elderly and bring to Georgian people real prosperity. Despite of the central government announcement that the new system of accumulative pension was successfully adopted in the country, there are still hot debates and discussions in Georgian society including its fairness and effectiveness, which indicates the lack their awareness and involvement in this process.Since workers aged over 40 can opt-out from the pension system, hundreds of thousands among population will remain without a decent pension in the future. This will cause massive poverty in old age. The main aim of this paper is to analyze exciting pension fund reform in order to give people a clear understanding of reform. In the presented research, there is discussed the introduction and development reform of the pension system in Georgia. International experience is also analyzed on the example of other countries, specifically Armenia, Azerbaijan Estonia and Latvia. It also discusses the characteristic aspects of the pension model introduced in Georgia. Finally, paper also include Social research specifically opinion of Georgian people about the new pension systems.

At the present stage of social and economic development of social relations in Ukraine, pension reform gets considerable attention.It is necessary to eliminate legislative gaps, improve the legal regulation of insurance premiums for compulsory state pension insurance, as well as eliminate disproportions in the levels of pensions for various categories of citizens, etc.This and other issues related to the problems of reforming the pension system in Ukraine are covered in the works of I.F. Gnibidenko, B.O.Nadchocia, L.A.Demchuk, O.G.Mordvinova, S.M.Nedbayeva, K.P.Chernenk, A.Ya.Jakubovich, and others. However, it is still critical to make further scientific research since there is a need to introduce the accumulation component, and to determine the mutual influence of reforming the system of pensions and economic development of the country.The purpose of this article is a scientific substantiation of the need to develop a modern concept of the pension system upgrade executed in the context of an economic crisis.The Ukrainian pension system upgrade issue is constantly attracting attention not only of scientists but also of the general public and the state. However, so far, the state has implemented only partial measures aimed at reorganizing the existing pension system without taking into account the current realities of the Ukrainian society development.In terms of reformation of the pension system, Ukraine walks the path already laid by economically developed countries, without taking into account its own economic realities, which is why it lags behind the countries it took its lead from.The article unravels the research on the concept of the pension system modernization, as well as analyzes the current state of the pension system of Ukraine.It also examines the peculiarities of the way pension system functions in the leading countries of the world. It covers the level of pension systems and the impact of demographic and economic indicators on them. Finally, it highlights general features and main disadvantages of existing pension systems in different countries of the world.The study substantiates the need for a significant amplification of the compulsory accumulation pension system and the introduction of a permanent co-financed program for accumulative pensions which should be working on a permanent basis.On the ground of the comprehensive analysis it is determined that the modernization of pension reform should be a model of advanced development, when the state determines the directions of breakthrough” and concentrates all efforts on the achievement of the result in a particular field.It is also suggested for the state to use all possible means and methods in order to to encourage the creation of a voluntary pension system to meet the needs of pensions assurance.The creation of the State Savings Fund, in its turn, seems to be a wrong way of pension reform development.Implementation of the criteria for the effectiveness of modernization of the future pension system will ensure the financial stability of the Ukrainian pension system at the expense of: balancing the use of the budget funds of the Pension Fund; reformation of early retirement benefits; increasing the efficiency and reliability of the accumulative part of the pension system.

The reform of public pension systems and, more generally, the review of old-age income support are on the reform agenda worldwide. The reform discussion is more intense in countries where population aging is well advanced, including the member countries of the Organization for Economic Co-operation and Development (OECD), much of Latin America, China, Russia, and the former transition economies of Southeastern Europe (SEE). But developing countries in the global South are also awakening to the challenges of aging and old-age income support in view of changing family structures, urbanization, and migration. Over 80 percent of the increase in the numbers of persons age 65 and older up to 2050 will take place in countries with current per capita incomes of US$1,000 and below. Whereas the North grew rich before becoming old, the South risks becoming old before becoming rich. The remainder of the chapter attempts to substantiate this point. The next section briefly describes aging and its fiscal implications in the light of demographic developments in the countries of Southeastern Europe. There follows an outline of the drivers of pension reform that go beyond population aging and have to be understood when choosing among reform options. Subsequent sections take up recent international reform trends and lessons and underline key points concerning the labor market and financial market reforms needed to support pension reform. The chapter ends with some concluding remarks.

The relevance of the paper is caused by the fact that the current pension system did not satisfy either citizens, since their pensions were extremely miserable, neither employers due to the high level of contributions to the Pension Fund of the Russian Federation, nor the government, since the low level of pensions caused social and, as a consequence, political tension, nor the subjects of the Russian Federation, since the unfunded pension system obliged the regions to deduct funds from their own funds to cover pension obligations to subsidized regions. The way out of this situation is the creation of a new pension reform, which will increase the size of the pension by increasing the income of the pension system itself. The main goal of the pension reform is to increase the welfare of Russian citizens after they retire. The subject of the study is a new pension reform, the stimulus of which was to become a transition from an unfunded to a defined contribution pension system. The aim of the study is to identify the main economic reasons for creating a new pension reform. Methodology. To study the new pension reform, the main indicators are systematized: the minimum length of service for assigning an insurance pension, the amount of pension points for the period from 2015 to 2024 and subsequent years, and pension calculation formulas. Results. According to the new pension reform, the employee is encouraged to show full salary for employers to pay insurance contributions. The conditions are created to remove real wages from the “shadow”. The unfunded pension system caused social instability, caused a conflict of generations, workers and employers, destabilized the authorities. The new pension reform is designed to provide conditions for mutual assistance of generations and social partnership. The unfunded pension system led to the fact that pension payments were a heavy burden on the economy. The new pension system, at the expense of the funded part of the insurance contribution, creates an investment resource of “long money” (with a demand period of 25-30 years). Thus, the pension system not only serves elderly citizens, but also really works to develop the domestic economy.

Introduction. The development of an effective pension system is one of the cornerstones of forming a socio-economic model of state development for any country. The mechanisms of formation and use of financial resources of the pension system affect all aspects of the functioning of such model. Assignment of tasks of the organization of future provision of pensions only on some one of the parties of this process (state, employer, individual) is historically demonstrated the vulnerability of such “single-level” models. Accordingly, most countries in the world are developing multi-level models of national pension systems to create various organizational forms of retirement provision, to attract as many participants as possible, and to provide the financial resources needed to secure future retirees. The introduction of a multi-level pension system in Ukraine is still continues. Therefore, the study of problems of state regulation of the functioning of new forms of pension provision for the national pension system and the prospects for their development remains relevant. Purpose of the research is to investigate the problematic aspects of the activity of non-state pension funds as a component of the multi-level pension system of Ukraine and determine the prospects for their development, taking into account the influence of the state. Results. The place of the non-state pension funds in the multilevel pension system of Ukraine is defined. Influence and interdependence of activity of NSPF and other elements of an accumulative component of the national pension system is reasonable. Negative aspects of influence of the state on functioning of non-state level of the pension system in general and NSPF in particular and also consequences for development of activity of NSPF slowing down of development by public authorities of the accumulative making pension system of Ukraine are revealed. Conclusions and recommendations on stimulation of structural reform of the national pension system and development of activity in it the non-state pension funds are formulated. Conclusions. During of pension reform in Ukraine the state focuses attention on reforming of a solidary component of the pension system which covers a considerable part of electorate (pensioners) and slows down introduction of mandatory funded pension system as it will not have fast influence on the electorate presented by the working citizens. Development of nonstate level of the pension system in the context of social and economic development by the government is practically not considered and restrains by subjective factors: a voluntary nature, low level of awareness and trust of citizens and the enterprises concerning activity of the nonstate pension funds and also purposeful (or spontaneous) actions / inaction of public authorities which complicate operating conditions of institutions of non-state pension provision. Objective factors that hamper the development of non-state pension provision are the problems of the national economy, caused by the global and national economic crises (high level of shadowing of the economy and wages, outstripping growth of the share of current consumption in monetary incomes of the population, inflation and currency devaluation, reduce the possibility of the diversification of domestic investments and insufficient accumulated pension assets in foreign currency equivalent for effective foreign investment, etc.). Necessary condition of effective influence of state regulation on development of the national pension system is observance of the legislation by public authorities and appropriate performance of the tasks assigned to these bodies, prevention of emergence of legal collisions between rules of various acts of the legislation, full economic grounding of regulatory measures. The leverage of the development of non-state pension funds may be the introduction of a mandatory accumulation level of the pension system with the involvement of non-state pension funds in the maintenance of mandatory retirement savings. It can stimulate additional voluntary pension savings, a legalization of wages of the working citizens, increase in sources of provision of pensions of the citizens and increase in level replacement of labor income in an old age and also formation of a powerful source of investment resources for financing of national economic development.

1. Introduction and Overview Katja Hujo PART I: POLITICAL ECONOMY ISSUES IN PENSION REFORM 2. Pension Privatization and Economic Development in Central-Eastern European Pension Reform Katharina Muller 3. Pension Schemes and Pension Reforms in the Middle East and North Africa Markus Loewe 4. The Reform of the Civil Service Pension Programme in Korea: Changes and Continuity Huck-ju Kwon PART II: PENSION SYSTEM AND REFORM IN THE BRICS 5. Recent History, Perspectives and Challenges to Pension Policy: The Brazilian Case Marcelo Abi-Ramia Caetano 6. Social Security Reform and Economic Development: The Case of India Mukul G. Asher and Azad Singh Bali 7. Towards Universal Coverage: A Macro Analysis of China's Public Pension Reform Lianquan Fang 8. The Private Affairs of Public Sector Pensions in South Africa: Debt, Development and Corporatization Fred Hendricks PART III: BRINGING THE STATE BACK IN 9. Pension Reform in Bolivia: Two Models of Income Security in Old Age Peter Lloyd-Sherlock and Kepa Artaraz 10. Pension Reform in Chile and Argentina: Towards More Inclusive Protection Katja Hujo and Mariana Rulli 11. Conclusions Katja Hujo

After the collapse of the former Yugoslavia, Croatia inherited a ‘premature’ socialist pay-as-you-go pension system. It has undergone many reforms: one systemic reform (from 1998 to 2002, which resulted in the establishment of the three-pillar pension system), and several parametric reforms, the last one encompassing all three parts of the pension system (2013–2016). The existing pension system of unfunded pensions at the beginning of 2002 was replaced by a combined system of unfunded and funded pensions. Thenceforth, the pension system was based on the three pillars: (a) the 1st pillar is an obligatory public pension system, based on inter-generational solidarity; (b) the 2nd pillar is an obligatory funded pension system, based on individual capitalized savings; and (c) the 3th is a voluntary pension insurance system based on individual capitalized savings for those who want to pay even more retirement insurance against the risks of old age. The purpose of the chapter is to provide an analysis of the policy-making process and reform of the Croatian pension system, focusing on its sustainability and adequacy.

The state, stages of formation and problems of the pension system of Ukraine are considered. The main directions of pension reform are identified, taking into account the experience of Poland. The attitude of citizens to the current state and readiness for changes in the pension system of Ukraine is analyzed. The survey showed that the respondents are ready and support the reform of the Ukrainian pension system and the introduction of the accumulative component, but there is a big problem in the form of distrust of private pension funds and private insurance companies. It is determined that the pension system is no longer able to withstand the load and requires changes in the near future. Analysis of the pension system has shown that it has always been formed taking into account only short-term objectives, which makes it ineffective in strategic terms. It is substantiated that without the growth of the welfare of the population, the de-shadowing of the labor market and the introduction of accumulative pension insurance, the financial condition of the Ukrainian solidarity pension system will deteriorate every year. However, along with the expected positive effect of the introduction of the accumulative component in Ukraine, there are also risks, as fluctuations and instability of the domestic economy may lead to deterioration of the banking sector and insurance companies, which will reduce investment returns in the system or even partial loss of pension savings. Two development scenarios (pessimistic and optimistic) for the pension system of Poland and Ukraine are analyzed. It is determined that for the successful reform of the old solidarity system of Ukraine into a cumulative one it is necessary to: ensure sustainable GDP growth; create a centralized information system for collecting contributions; to personify and register all insured persons in the Pension Fund; identify the needs for qualified personnel, equipment and funds needed to meet the requirements of the new system; provide absolutely all conditions for the effective implementation of the private pension system.

(2011). Results of Reform of Russia's Pension System and Its Prospects. Problems of Economic Transition: Vol. 54, No. 5, pp. 95-100.

This article discusses some theoretical conceptual aspects of the problem of Public Administration in Singapore. At different stages of its economic development, the Singapore government has faced various housing problems. In the 1960s, a comprehensive system of land and housing provision and financing was created to solve the problem of housing shortages. This article analyzes the main pillars of the reform of the pension and housing systems, in particular, identifies such issues as the rules for resolving pensions, providing the population with social housing, the importance and necessity of the Central Provident Fund Board in Singapore, the policy of ethnic integration and the rental scheme. In this article, the main policy changes presented were evaluated and recommendations for reforming the housing market were given. The long-term evolution of Singapore’s economy has been analyzed in comparison with the past, and we have tried, in addition to analyzing the current situation, to give forecasts and political recommendations for the future. In addition, in this article, we studied the practical value and significance of Singapore’s experience for Kazakhstan, comparing the main similarities and differences in pension and housing policy reform in Singapore and Kazakhstan. Key words: Singapore, Government, Public Administration, reform of pension and housing systems, social housing.