Abstract
The pension system existing in Ukraine does not correspond to the modern requirements of society and needs radical reforms in which the main focus should be on the introduction of a mandatory accumulative pension system. It is shown that accumulation of funds in accumulative pension system (APS) requires complex calculations. A model for accumulation of funds in the accumulative pension insurance system used in this paper makes it possible to determine a set of interrelated parameters – insurance premium rates, reasonable insurance periods, the desired rates of profitability, the required amount of savings, investment potential of accumulative pension system, etc. The amount of funds in accumulative pension insurance system depends not only on the basis of insurance (number of payers of insurance premiums), the amount of contributions (rate and object) and (primarily) on the term of beginning of payments of insurance premiums, the coefficient of profitability of invested funds and guarantees of their safety at all stages of functioning of the accumulative system. The analysis has shown that it is necessary: to cover all people employed in the economy with accumulative pension insurance; a rate of contributions should be determined not only by wages, but also by income; prior to the introduction of accumulative pension system – to create the necessary infrastructure, to develop a legal framework, to organize the management of accumulative funds, to solve the issues related to the protection of funds from the risks of losses. The beginning of introduction of the accumulative system should be postponed till 2020.
Highlights
The pension system existing in Ukraine requires fundamental changes that would make it adequate to the economic situation of the state and its demographic situation
A model for accumulation of funds in the accumulative pension insurance system used in this paper makes it possible to determine a set of interrelated parameters – insurance premium rates, reasonable insurance periods, the desired rates of profitability, the required amount of savings, investment potential of accumulative pension system, etc
The analysis has shown that it is necessary: to cover all people employed in the economy with accumulative pension insurance; a rate of contributions should be determined by wages, and by income; prior to the introduction of accumulative pension system – to create the necessary infrastructure, to develop a legal framework, to organize the management of accumulative funds, to solve the issues related to the protection of funds from the risks of losses
Summary
The pension system existing in Ukraine requires fundamental changes that would make it adequate to the economic situation of the state and its demographic situation. The vast majority of researchers, including this author, believe that corresponding to such requirements may be an introduction of the mandatory accumulative pension system along with the current solidarity payment system and the voluntary accumulative pension insurance system In this regard, it is necessary to study the mechanism and prospects of accumulation of funds to create a balanced and fairly efficient pension system. A pension reform in Kazakhstan started in 1998: all working people had to deduct 10% of their income into the accumulative retirement fund on individual pension accounts. Most published works highlight specific issues of building of accumulative pension system in Ukraine, and the experience of the neighboring countries makes it possible to analyze the dynamics of practical effectiveness of a particular approach to its building, today there is a need in further research to identify and analyze the mechanism and prospects of accumulation of funds by the pension system in reforming the pension provision in Ukraine. The article’s goal is to ananalyze of the current conditions of pensions in Ukraine and to evaluate the prospects of accumulation of funds by the system of obligatory accumulative pension insurance system
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