Contribution Pension Research Articles

Employment preferences of healthcare workers in South Africa: Findings from a discrete choice experiment.

There is a maldistribution of human resources for health globally, with many Lower- and Middle-Income Countries experiencing significant shortages. We examined healthcare workers’ job preferences in South Africa to identify factors which potentially influence employment decisions. A discrete choice experiment was conducted among 855 South African healthcare workers critical to its national HIV testing and treatment programs. Job characteristics included workload, workplace culture, availability of equipment, training opportunities, sector and facility type, location, salary and benefits. Main effects analysis was conducted using fixed effects logistic regression. Interaction effects identified divergence in preferences. Heavy workload (OR = 0.78; 95% C.I. 0.74–0.83), poor workplace culture (odds ratio 0.66; 95% C.I. 0.62–0.69), insufficient availability of equipment (OR = 0.67; 95% C.I. 0.63–0.70) and infrequent training opportunities (OR = 0.75; 95% C.I. 0.71–0.80) had large, significant effects on worker preferences. An increase in salary of 20% (OR = 1.29; 95% C.I. 1.16–1.44) had a positive effect on preferences, while a salary decrease of 20% (OR = 0.55; 95% C.I. 0.49–0.60) had a strong negative effect. Benefits packages had large positive effects on preferences: respondents were twice as likely to choose a job that included medical aid, pension and housing contributions worth 40% of salary (OR = 2.06; 95% C.I. 1.87–2.26), holding all else constant. Although salary was important across all cadres, benefits packages had larger effects on job preferences than equivalent salary increases. Improving working conditions is critical to attracting and retaining appropriate health cadres responsible for the country’s HIV services, especially in the public sector and underserved, often rural, communities. Crucially, our evidence suggests that factors amenable to improvement such as workplace conditions and remuneration packages have a greater influence on healthcare workers employment decisions than employment sector or location.

The Outlines of a Possible Pension System Funded with Human Capital

The broadly used pay-as-you-go (PAYG) pension system is intrinsically wrong. The essence of the problem is that the PAYG system distributes the yield of raising children, i.e., of human capital investment (which is essentially the pension contribution), in such a way that it disregards the extent to which individuals have contributed to this, and even whether it has occurred at all. This error can be corrected if we take the pension contribution to be the yield on an investment of human capital, and as such use this to pay back the costs and expenses of the raising of the contribution payer—overall to those who paid these costs and expenses at the time. Accordingly, the central question of my study is whether it is possible to construct a consistent pension system based on the above foundations, and how my ideas may be inserted into the Diamond–Samuelson model. The method of the study was logical analysis and the construction of a theoretical mathematical model. The results of the study show that it is possible to construct a public pension system that operates according to a different logic than today’s system, a system which is free from the effects of demographic fluctuations, which does not motivate the refusal to have children, and which will remain self-sufficient under all circumstances. The study achieves this by presenting a possible pension system of this kind in detail. Via the suitable modification of the Diamond–Samuelson model, I have succeeded in showing that the pension system I am proposing increases the willingness to have children up to the social optimum, in contrast to the fully (but traditionally) funded and PAYG systems. This system currently only exists in theory and may be regarded as a major theoretical innovation, which naturally has certain (although not particularly extensive) antecedents. Its introduction could enable the resolution of the contradictions of existing pension systems and could also provide a solution to the as yet unsolved problem of the increasingly expensive regeneration of human capital, and as such, its potential practical implications are immeasurable.

The long term impact of Chilean policy reforms on savings and pensions

Using a combination of survey data plus the demographic and life expectancy projections for Chile I simulate how different policies may impact the workers’ pensions and voluntary savings. I find that households dissave from their public pension benefits, but not from their contributory pensions, therefore policy increases of contributions are not crowded-out by private decisions. The results show that an increase of the contribution rate plus a delay of the retirement age is necessary to achieve high replacement ratios until 2055. Boosting the education of younger generations and incentives for female employment is efficient for increasing pensions among the poorest households.

Pension scheme trustees as surrogate decision makers

Pension trustees make surrogate decisions on behalf of scheme members. However, prior research has not explored how this might affect pension adequacy. Our results show that when setting targets for pension replacement income, trustees project their own preferences instead of reflecting member preferences. Furthermore, projection was more pronounced for trustees with lower financial literacy. Trustees choose significantly higher pension replacement rates for members than members choose for themselves. Trustees also choose replacement rates higher than current benchmarks. The economic consequences are potentially considerable, due to high levels of pension contributions and incompatible risk-taking. A better understanding of the dynamics of decisions made by trustees is needed to ensure better member outcomes.

Pension coverage in Latin America: Trends and inequalities

AbstractUsing household surveys from 17 Latin American countries over 2009–2018, we analyze contributory pension coverage for the economically active population (EAP) and contributory/non‐contributory pension coverage for older persons. Nine countries have “private” and eight have “public” pension systems. Inequalities in gender, income, education, location and firm size affect both coverage of the EAP and the elderly. Rather than being affected by the type of pension system – private or public –, coverage depends on structural features of the labour market and public policy interventions. Our findings confirm current understanding that level of development is directly related with coverage whereas inequality and informality are inversely related with coverage. Based on these results, we recomend policy interventions.

A dynamic behavioral model of Korean saving, work, and benefit claiming decisions

The Republic of Korea faces a rapidly aging population that is more reliant on public pension support but pension contributions are insufficient to support its long-term obligations. As a result, there is a growing debate on what type of reforms to the current defined-pension system could balance the long-term funding of the system with insuring benefit levels for old and new beneficiaries. In this paper, we develop and estimate a dynamic behavioral model that captures essential elements of the National Pension Scheme (NPS) and behavioral responses in labor supply, savings and benefit claiming to changes in the public pension system using a nationally-representative sample of married couples nearing retirement from the Korean Longitudinal Study of Aging (KLoSA). We use the model estimates to evaluate the effect of counterfactual policy experiments such as increases in the contribution rate and the extension of normal retirement age on the decision to work or not work, savings and benefit claiming among individuals near retirement. While these policies are aimed at shoring up the NPS, our model demonstrates that changes to the contribution rate could discourage work and savings in married households near retirement. In particular, a 2 percentage point immediate increase in the contribution rate would reduce household savings by 2 percent among poor households, as well as reduce labor participation among wives by 3 percent and among husbands by less than a percent. When we simulate the same increase in the contribution rate in even increments over five years, households anticipate the policy change and increase their savings to compensate for the future fall in income, dissipating undesirable behavioral responses such as decreased work and savings. In contrast, an increase of 2 years in the normal retirement age leads to a 3 percent increase in household savings, and to an increase in both husband and wife labor force participation (less than 1 percent and 3 percent respectively). These finding suggest policy design, such as phase-in periods, can be leveraged to minimize undesirable behavioral responses of households near retirement. Despite their potential detrimental effects in labor supply and savings, findings from a benefit-cost analysis suggest that the costs of undesired behavioral responses to an increase in contribution rates are orders of magnitude smaller than the revenue benefits to the NPS's finances.

SUSTAINING INNOVATIVE HUMAN RESOURCE MANAGEMENT IN ACHIEVING ORGANIZATIONAL PRODUCTIVITY

Business organisations are facing the challenges of innovative adaptation in human resource management in Nigeria. The study aims at highlighting the various areas of conscious alignment of human resource management to the ever changing technology in the Nigerian work environment as a boast to achieving organizational productivity. Data used for the research were secondary and primary. In a field research of Petterson Group Ltd, an Onitsha based human resource consultancy firm, a likert structured questionnaire containing eight (8) items were designed and administered on the management staff. Data were analysed using mean and standard deviation. Hypotheses were tested using Z-test in the SPSS software. Findings reveal that functional areas of human resources; recruitment, training and development as well as salary and wage administration are experiencing noticeable innovations. It is recommended that close cooperation between employers and relevant agencies and organs of government will go a long way in facilitating effective implementation of statutory innovations and reforms like in the areas of contributory pension scheme, monetization, minimum wage, etc.
 Keywords: Innovation, Human Resource Management, Organizational Productivity.

Women’s Pension Rights in the Korean National Pension and the J apanese Public Pension

Purpose: In Korea and Japan, the birthrate is declining and the population is aging at an unprecedented rate compared to other countries. In particular, the average life expectancy of women is longer than that of men, so the public pension systems that financially support women’s lives in old age is more important than ever before. Korea and Japan have many similarities in women’s lifestyles and employment structures, and labor laws related to women, but there are many differences in the structure of women’s pension rights. Research design, data, and methodology: This paper focuses on women’s pension rights in Korean National Pension and Japanese public pension and examines the following three points: First, the history and structure of the public pension in Korea and Japan. Second, women’s pension enrollment conditions and the current situation in the Old-Age Pension, which accounts for 80% of public pension benefits. Third, the structure of the Survivors’ Pension and the divorce-based Pension Splitting, which 90% of beneficiaries are women. Results: Public pension system in Korea consists of two parts with the National Pension(NP) and a Special Occupational Pension(SOP). On the other hand, public pension system in Japan consists of a two-tier structure with the National Pension(NP) and the Employees’ Pension Insurance(EPI). The main difference between the two countries in relation to women’s pension rights is the treatment of dependent spouses. In Korea, pension contributions are based on “individual units”, and dependent spouses are classified as Voluntary Insured Persons of NP. On the other hand, in Japan, dependent spouses of a Category Ⅱ Insured Persons are classified as CategoryⅢ Insured Persons and they receive the Old-Age Basic Pension of NP in old age without paying the pension contribution. In addition, women’s pension rights in Survivors’ Pension and divorce-based Pension Splitting also depend on the Category of NP, which their spouse have covered. Implications: In Korea, more than 50% of married women are full-time housewives, and most of them are not covered by the Old-Age Basic Pension of NP. As a result, one in two elderly women is in poverty without pension in old age. In Japan, more than 90% of married women are covered by pensions, but there is an unfairness in insurance contribution and benefits between self-employed households and employee households. Although there are institutional differences in women’s pension rights between the two countries, women can receive more benefit amount in old age when they work and are covered by their own pension. In order for more women to be able to continue working without interruption of their careers, to increase the participation rate of women in public pensions, and to reduce the poverty rate of women in old age, the governments of both countries have to take stronger measures to encourage women’s employment and support the balance between work and family.

Women’s Pension Rights in the Korean National Pension and the J apanese Public Pension

Purpose: In Korea and Japan, the birthrate is declining and the population is aging at an unprecedented rate compared to other countries. In particular, the average life expectancy of women is longer than that of men, so the public pension systems that financially support women’s lives in old age is more important than ever before. Korea and Japan have many similarities in women’s lifestyles and employment structures, and labor laws related to women, but there are many differences in the structure of women’s pension rights. Research design, data, and methodology: This paper focuses on women’s pension rights in Korean National Pension and Japanese public pension and examines the following three points: First, the history and structure of the public pension in Korea and Japan. Second, women’s pension enrollment conditions and the current situation in the Old-Age Pension, which accounts for 80% of public pension benefits. Third, the structure of the Survivors’ Pension and the divorce-based Pension Splitting, which 90% of beneficiaries are women. Results: Public pension system in Korea consists of two parts with the National Pension(NP) and a Special Occupational Pension(SOP). On the other hand, public pension system in Japan consists of a two-tier structure with the National Pension(NP) and the Employees’ Pension Insurance(EPI). The main difference between the two countries in relation to women’s pension rights is the treatment of dependent spouses. In Korea, pension contributions are based on “individual units”, and dependent spouses are classified as Voluntary Insured Persons of NP. On the other hand, in Japan, dependent spouses of a Category Ⅱ Insured Persons are classified as CategoryⅢ Insured Persons and they receive the Old-Age Basic Pension of NP in old age without paying the pension contribution. In addition, women’s pension rights in Survivors’ Pension and divorce-based Pension Splitting also depend on the Category of NP, which their spouse have covered. Implications: In Korea, more than 50% of married women are full-time housewives, and most of them are not covered by the Old-Age Basic Pension of NP. As a result, one in two elderly women is in poverty without pension in old age. In Japan, more than 90% of married women are covered by pensions, but there is an unfairness in insurance contribution and benefits between self-employed households and employee households. Although there are institutional differences in women’s pension rights between the two countries, women can receive more benefit amount in old age when they work and are covered by their own pension. In order for more women to be able to continue working without interruption of their careers, to increase the participation rate of women in public pensions, and to reduce the poverty rate of women in old age, the governments of both countries have to take stronger measures to encourage women’s employment and support the balance between work and family.

ПРОБЛЕМИ СИСТЕМИ ПЕНСІЙНОГО ЗАБЕЗПЕЧЕННЯ В УКРАЇНІ

Introduction. It is important to study the problems of the modern pension system in Ukraine and find ways to improve its development in the context of European integration. In this context, the issue of structural and parametric transformation deserves attention, which will create conditions for equalization of lifelong consumption, poverty reduction among people who have lost their ability to work, increase their quality of life, reduce social differentiation, economic growth through pension contributions. The purpose of the article is to substantiate the theoretical foundations and practical approaches to the development of the pension system in Ukraine. Results. The essence of the pension system, pension, pension provision is theoretically substantiated, their structure, functions are clarified, scientific approaches are generalized and own interpretation of the concept “pension system” is offered. It is a set of legal, economic, social, financial and organizational norms and institutions to create appropriate conditions that act as a leading factor in social reproduction for the material security of individuals in the form of decent pension benefits. The levels, tasks, tools, components of the implementation of pension policy and strategies for the development of pension provision are substantiated. A retrospective analysis of the formation and development of the pension system in Ukraine, to determine the features of the current stage and prospects for transformation in the context of European integration. The peculiarities of the structure and dynamics of the development of the system of solidary pension provision of persons who have lost their ability to work, its efficiency and fairness have been studied. Organizational-institutional and functional changes in the national pension system are substantiated, ways to implement them in the context of European experience are developed. Conclusions. The current pension system of Ukraine in legal, organizational, economic and social terms needs fundamental changes that would make it adequate to the conditions of the transition period and socially-oriented market economy. Keywords: pension system; private pension provision; investments; cumulative pension provision; an economy; economic policy; financial instruments.

To cap or not to cap on public pension

ABSTRACT Many countries actually put a cap on their public pension so that public pension contribution and benefit no longer increase above the cap, while others do not. Should the government remove the cap on the public pension? Using an overlapping-generations model, this article finds that putting a cap on the public pension is more socially desirable than removing it.

Mandatory Pension Savings and Long-run Debt Accumulation: Evidence from Danish Register Data

This paper uses two decades of Danish register data at the individual level to show that a 1-dollar increase in pension wealth leads to a 42-cent rise in total debt for a group of low-wage earners. Collective bargaining in the labor market provides time-sector variation in mandatory pension contribution rates, which we exploit in two empirical research designs; an event study and a cross sectional IV-regression model. Both methods demonstrate that the debt rise is accompanied by increased housing wealth and homeownership rates. Together, the empirical evidence indicates that mandatory pension contributions lead to a signi cant increase in net wealth, as well as in gross debt.

Practical Applications of The Top Three Pension Systems:Denmark, Finland, and the Netherlands

In <b>The Top Three Pension Systems: <i>Denmark, Finland, and the Netherlands</i></b>from the Fall 2020 issue of <b><i>The</i></b><b><i>Journal of Retirement</i></b>, authors <b>Svend E. Hougaard Jensen</b>(of <b>Copenhagen Business School</b>), <b>Jukka Lassila, Niku Määttänen, Tarmo Valkonen</b>(all of the <b>Research Institute of the Finnish Economy</b>), and <b>Ed Westerhout</b>(of <b>Tilburg University</b>) analyze the three top-rated pension systems from the 2018 Mercer Global Pension Index. All three systems share common strengths: mandatory participation, a minimum guaranteed old-age income, a high income-replacement rate, and robust fiscal sustainability. They also have privatized elements (like decentralized management and market-based investing) and rely on social partners (employee and employer representatives) to help get public buy-in for policies. However, all three pension systems face similar challenges–like legitimacy issues (since social partners are elected by a shrinking number of union members) and the fact that mandatory pension contributions can preempt savings for shorter-term goals. Policymakers worldw study these pension systems to help find solutions to problems in their own systems. Policymakers in the United States can find valuable information on issues like privatizing Social Security, eligibility changes, and getting public buy-in for reforms designed to increase the system’s sustainability. <b>TOPICS:</b>Retirement, social security, pension funds, wealth management

IMPROVEMENT OF PENSION INSURANCE PRINCIPLES

Abstract. The article presents basic principles of investments into pension funds, namely, the principles of safety, profitability and negotiability, and specific features of pension insurance in the world, such as administration of premium collection, features that are specific for rural areas and specific features of «ethical investing». It was proved that the countries that developed pension systems of a new type should use the experience of guaranteed pension payments. To overcome the financial crisis in pension provision system, it is necessary to develop new principles for renovation of the world pension markets. It was found out that use of the pay-as-you-go pension system is a vital issue for many countries on the back of the financial crisis and failure of citizens to make pension contributions. Many foreign scientists, economists, politicians have researched problems of pension system development, setting the foundation of modern pension systems in the world economies. Ukrainian scientists form the modern vision of a new pension system in Ukraine. In the sphere of social insurance both in Ukraine and all over the world, it can be stated that a pension system is an important part of the social security system of economic activity. The objective of the article is substantiation of theoretical principles and development of scientific and practical recommendations on pension insurance in terms of reforming a pension system. The role of pensions increases along with development of market relations in the countries where social, economic and political changes take place. Based on previous researches, the scheme presenting basic principles and features of pension insurance in the world has been developed. Based on the above, it can be stated that demography is an urgent problem for many countries of the world. It can be solved via higher retirement age, levelling of retirement age of men and women, higher state expenditures on pensions, etc., with due consideration of specific situation in every single country. The processes of investment of funds play an important role in implementation of pension provision principles. Investing into pension insurance funds in the capital market has some specific features and principles that should be adhered for the sake of safety, profitability and negotiability of assets. Thus, the government has to regulate and control the process of pension funds investing. Depending on the governmental policy, restrictions have to be imposed on investing into various assets. High level of inconsistency of processes in this sphere is due to internal and external factors, and it requires further research. Keywords: the pension system, pension insurance, pension provision, retirement age, social security. JEL Classification G22, G23, H55, J32 Formulas: 0; fig.: 1; tabl.: 0; bibl.: 11.

Population Aging and Its Impact on the Country's Economy

ObjectiveThe present article raised the pressing issue of population aging in Russia and investigated the challenges this phenomenon poses to the social security system. As modern studies show, this challenge is typical for both developing and developed countries. The paper intended to propose ways of reforming the pension system of the Russian Federation to ensure its independence from the state budget.MethodsThe provided suggestions were based on the analysis of the current demographic problems in Russia, review of the dynamics of its population age composition, consideration of the most popular strategies for reforming pension systems in developed countries, and the specific features of the Russian labor market.ResultsCurrently, for Russian Federation, the population over the working age grew by 11.6%, and number of the working‐age people and those under the working‐age decreased by 9.3% and 5.6%, respectively. The inverse dependency ratio ranged from 2.2 to 1.7 in 2019 to the level of 1.78 for 10 years. As a result, it was noted that ignoring the issue of population aging can lead to a decrease in state budget stability and adversely impact the country's economic prosperity.ConclusionThe novelty of the research lies in selection of the main problems of reforming country budgets in connection with the increase in the number of elderly people and changes in the dynamics of pension contributions in connection with the growing expectations of the population. Among other things, the article also highlighted the presence of additional difficulties that may accompany the implementation of the proposed measures.

Elderly empowerment, fertility, and public pensions

The economic role of elderly people is underestimated in the context of the debate on pension reforms. This is because, as healthy life expectancy increases, the elderly become more active not only in the labor market but also in household production. Using a three-period overlapping-generations model in which grandparents allocate time between labor and informal childcare (“grandparenting”), we analyze the interaction among grandparenting, fertility, elderly labor, and public pensions. We obtain two analytical results. First, increasing the pension contribution rate increases grandparenting. Second, elderly labor force participation rates are negatively (positively) related to the fertility rates among countries with small (large) public pensions. The nonlinear relationship between elderly labor and fertility is empirically supported.

Assessment of the effectiveness of anti-COVID tax support for innovation activities of small and medium-sized enterprises in OECD countries

The global economy has rebounded from the lows of 2020, but its recovery will depend on innovations. Therefore, it is important to identify the most effective tax support instruments for the innovation activities of small and medium-sized enterprises (SMEs) that are used in the framework of anti-crisis economic policies in the OECD countries. It is suggested that tax incentives are the most effective tax instrument of all; the effectiveness of the profit tax benefit depends on the SME’s profitability; as to the social insurance and pension contribution, there is an allowable minimum of the rate, determined by the level of wages, that will stimulate innovation. To assess the effectiveness of tax support tools, the study used the methods of linear multivariate regression and simulation in Simulink. The source of information for regression analysis was the data published by the World Bank and the Organization for Economic Cooperation and Development (OECD). It was concluded that the most effective measures of tax support are tax incentives, as well as deferred payment of social insurance and pension contributions. The 10% profit tax was shown to be optimal to stimulate innovation provided the company keeps the saved profit for development. For innovative SMEs, the minimum allowable contribution rate for social insurance and pension provision, which stimulates their innovative activities, is 12%. The results of modeling confirmed that the proposed threshold indicators for supporting SMEs’ innovation activity can be an effective tool for overcoming the consequences of the global crisis caused by the COVID-19 pandemic.

Household Bargaining, Pension Contributions and Retirement Expectations: Evidence from the German Panel on Household Finances

Household Bargaining, Pension Contributions and Retirement Expectations: Evidence from the German Panel on Household Finances

A New Model of Public Safety

A New Model of Public Safety Elizabeth Glazer (bio) and Patrick Sharkey (bio) For five days last December, the police withdrew from the streets in Brownsville, one of New York City's poorest neighborhoods. The move was part of an agreement with the community to shift the primary power for keeping the peace to residents. Neighbors looked out for one another and relied on individuals trained to defuse disputes before they could escalate to violence. Local nonprofits and city agencies showed up with support, from job opportunities to help with homework. In a neighborhood that has led the city in shootings for decades, only one 911 call was reported—from a bus driver who mistakenly activated a distress signal. What happened in Brownsville is important, even if it lasted just five days and covered just a few blocks of Brooklyn. After a chaotic, tumultuous, and tragic year, the role and function of law enforcement in the United States is unsettled. Americans watched George Floyd slowly killed by a Minneapolis police officer last May. In June, police responded with brute force to widespread protests against racial injustice. Later that month, Seattle's Capitol Hill Autonomous Zone, an ad hoc space of demonstration with no cops and no leadership, became the site of multiple shootings before it was shut down with little resistance. And as all of this was unfolding, a surge of gun violence took hold across U.S. cities, leading to the sharpest singleyear increase in history. As the violence rose, city leaders began to turn back to the police in response. Those five days in Brooklyn, however, provide an alternative way forward. What happened in Brownsville may seem radical, but it rests on an old principle: tight-knit communities where residents have access to basic resources and strong local institutions are safer places to live. The idea that local organizations generate safe communities is not just folk wisdom. We have seen it happen, and rigorous research has documented its impact. In New York City, where an extensive network of community groups trained in defusing disputes is at work, shootings declined 28 percent, a rate three times as steep as comparable neighborhoods [End Page 91] without this strategy. Other social structures, including the city's NeighborhoodStat program, bring together residents, city agencies, and community organizations to identify and address the underlying drivers of crime, from unemployment, untreated mental illness, and substance abuse to crumbling parks and playgrounds and rubbish-strewn vacant lots. And they work: a study by the John Jay College of Criminal Justice found that New York City public housing complexes implementing the Mayor's Action Plan for Neighborhood Safety saw major declines in crime. We need more of these initiatives and on a larger scale. We also need to deepen existing efforts to shrink the criminal justice system, which research shows has its own criminogenic effects, spurring cycles of recidivism that pull people further into the system. These failures further erode trust between residents and the state in disadvantaged communities. In 2014, following Bill de Blasio's election, New York City began to rely more heavily on investments in community institutions to build stronger neighborhoods. Violence fell to historical lows, and intentional strategies were deployed to curtail and lighten the reach of the justice system into the lives of New Yorkers. The two major metrics of justice system activity were cut in half in the seven years between 2013 and 2020: arrests fell by 56 percent, and the number of people in jail fell by 49 percent. Prosecutor and probation caseloads also diminished, easing the stress on the entire apparatus of the criminal justice system. Despite this massive shrinkage in operations, however, budgets rose by 17 percent in real dollars. Per person costs also increased. From 2013 to 2020, the cost of jailing an individual rose from $93,000 to $224,000, without any significant improvement in the conditions of confinement. The cost of processing a single arrest rose 188 percent, from $12,000 to $34,000. When the costs of benefits and pension contributions are factored in, the total agency budgets rise steeply. The Department of Correction's budget, for instance, grows from $1 billion to...

РОЗВИТОК НЕДЕРЖАВНИХ ПЕНСІЙНИХ ФОНДІВ УКРАЇНИ: ПРОБЛЕМИ І ПЕРСПЕКТИВИ

The article considers topical issues of determining the current state of development of the private pension system in Ukraine, and defines the concept of "private pension fund". In economic essence, the system of non-state pension fund is defined as an integral part of the system of accumulative pension provision, based on voluntary participation of individuals and legal entities in the formation of pension savings in order to receive additional pension contributions. Problems that hinder the development of private pension funds, namely the shadowing of wages and labor relations, lack of public awareness, lack of legislation are identified. The functioning of private pension funds in the country depends not only on reforming the existing pension system, but also on the growth of incomes, their de-shadowing and development of the financial market in general. The current pension system is not able to provide the population with the necessary pension assets. This problem can be solved by intensifying the activities of private pension funds. Emphasis is placed on the need and importance of a voluntary private pension system and its role in ensuring the development of the state economy. As world experience shows, in a market economy, the development of private pension funds is one of the important components to ensure effective functioning of the state. Private pension funds are powerful investment investors because they can mobilize additional investment resources. The main purpose of investing pension assets is to preserve the savings of the population. The main indicators of activity of non-state pension funds are analyzed, namely: pension contributions, pension payments, the number of concluded pension contracts, the amount of investment income, etc. Further trends in the development of private pension provision in Ukraine are noted, substantiated the necessary measures to intensify activities in modern economic conditions, proposed recommendations for solving existing problems of institutions. However, in implementing the proposed measures should be remembered participation of both individuals and legal entities.