Modern Pension System Research Articles

Modern pension system of Russia: challenges, trends, prospects

Modern pension system of Russia: challenges, trends, prospects

СУТНІСТЬ ТА СУЧАСНИЙ СТАН РОЗВИТКУ НЕДЕРЖАВНИХ ПЕНСІЙНИХ ФОНДІВ В УКРАЇНІ

The purpose of the article is to consider the essence, assess the existing problems and develop recommendations for improving the functioning of non-state pension funds as subjects of the non-state pension system. Reducing the business activity of the population, the rapid development of the "aging nation" and the outflow of the working force for labor migration are the main reasons for the inefficiency of the modern pension system. As Ukraine has a three-tier pension system, at the same level as the reform of the solidarity part, there is also a need for effective development of the non-state pension system, which will allow the population to accumulate financial resources on a voluntary basis. Accordingly, the improvement of non-state pension supply should start with its financial institutions, namely non-state pension funds. The article considers the essence of non-state pension funds, assesses their condition and identifies the problems of their functioning. An analysis of the effectiveness of non-state pension funds in Ukraine for 2017-2020 is presented. Recommendations for improving non-state pension funds as subjects of non-state pension provision of Ukraine are provided.

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.

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.

ФІНАНСОВА СТІЙКІСТЬ ПЕНСІЙНОЇ СИСТЕМИ В УКРАЇНІ

The current period of social development is marked by institutional changes in the country's pension system, which last more than ten years and which have led to the creation of new pension institutions, the creation of a legal framework for future retirees. The need to reform pension insurance institutions in Ukraine is due to the demographic and economic problems of our pension system.In addition to economic and demographic factors outside the pension system, within the latter there are significant internal problems with maintaining the institution of early retirement, loss of insurance function and loss of earnings due to retirement due to retirement age and the mismatch between insurance rates associated with pension obligations.Measures to improve the pension system in order to achieve a socially acceptable level of pensions have yielded a number of positive results, but at the same time it is clear that the pension system in Ukraine still needs further restructuring, as reforms in this area do not have long-term financial reforms. Ensured stability and a balanced budget of the pension fund.Ongoing measures aimed at improving the pension system, achieving a socially acceptable level of pensions have made it possible to achieve a number of positive results, but at the same time it is clear that the pension system in Ukraine currently needs further transformations. whereas the reforms implemented in this area have not made it possible to achieve long-term financial stability and a balanced budget for the pension fund.There is no doubt that the emerging modern pension system should be adequate in accordance with the current conditions of socio-economic development of our country, as well as comply with international standards of pension provision, global trends in the development of pension institutions. The degree of effectiveness of a country's pension system can be determined on the basis of the high level of social security of pensioners provided by the pension institutions existing in that country.The degree of effectiveness of a country's pension system can be determined on the basis of the high level of social security of pensioners provided by the pension institutions existing in that country. At the same time, in modern society, older people, as shown by empirical studies, belong to those categories of the population who are less satisfied with their own lives and their quality than others; in addition, there has been a recent trend of a relative decline in the level of material security for pensioners.

ПРОБЛЕМИ ФУНКЦІОНУВАННЯ СИСТЕМИ ПЕНСІЙНОГО ЗАБЕЗПЕЧЕННЯ В УКРАЇНІ

The article explains the structure of the modern pension system in Ukraine, which is a simultaneous operation of three levels: the first level - solidary system of mandatory state pension (insurance); the second level - the cumulative system of mandatory state pension insurance; the third level - the system of non-state pension provision. Comprehensive analysis of the solidary system of universal state pension provision in Ukraine, in particular, the dynamics of revenues and expenditures of the Pension Fund of Ukraine, the number of single social contribution payers and the total amount of the single social contribution paid, the number of pensioners and the amount of average and minimum pensions in Ukraine, as well as the distribution of average pensions by regions of Ukraine are examined. As a result of the analysis, it was found that the solidary system of pension provision is imperfect due to the inability to provide an adequate standard of living for the elderly and other categories of citizens, to whom pensions are accrued and paid in accordance with the law. The main reasons for the inability of the Pension Fund of Ukraine to fulfill its obligations are the low birth rate, the payment of wages in envelopes and the departure of the working population abroad. The features of the funded pension plan of mandatory state pension insurance, which provides for the accumulation of funds of insured persons aged 18 to 35 years in the Provident Fund are defined. It is assumed that the heirs may receive the accumulated pension savings. The Provident Fund, in turn, should invest the received funds in the development of the economy of our country in order to obtain investment income. In Ukraine, the second level of the pension system does not work, which is due to the deficit of the Pension Fund of Ukraine. Current state of development of the non-state pension provision system by the following indicators: number of non-state pension funds and size of their assets, number of concluded pension agreements, total number of non-state pension funds, total value of non-state pension funds, volume of pension contributions and pension payments, size of investment income. The conducted analysis allowed to conclude that, despite the mistrust that exists in the Ukrainian society to financial institutions and organizations, non-state pension funds in Ukraine continue to develop and support the state, can succeed in the financial market. The right vision for solving the problems that take place in the current realities of the pension system in Ukraine has been outlined.

РОЗВИТОК ҐЕНДЕРНОЇ КОМПОНЕНТИ В СИСТЕМІ ПЕНСІЙНОГО ЗАБЕЗПЕЧЕННЯ В УКРАЇНІ

According to estimates of the demographic situation in Ukraine and in the world as a whole, the majority of elderly people are women, which is one of the aspects of gender characteristics. At the same time, at the age of women, they face problems, inappropriate for men, in almost all spheres of life, including employment and retirement. In this context, the spread of feminization of poverty among older age groups encourages the reform of the pension system in order to achieve its gender neutrality. The article identifies gender inconsistencies in the modern pension system of Ukraine compared to EU countries. Based on the elucidation of the essence of gender budgeting, the expediency of improving the domestic pension system by developing its gender component has been proved. This will not only help solve the problem of proper social protection, but will also serve as an important basis for building the country’s investment potential.

Modern pension and health insurance systems in Japan

The article substantiates the relevance of issues related to the functioning of social protection systems for the population of developed countries. The review and analysis of the modern pension system in Japan is made. The mechanism of recognition of Japanese citizens and foreign citizens residing in it as insured persons of a certain category and the mechanism of functioning of individual subsystems of the pension insurance system (in particular, basic pension, employee pension insurance, optional (additional) pension insurance system) are considered. The data on the absolute amounts and rates of insurance premiums, the formulas by which the monthly pension is calculated, and the conditions that must be met by insured persons to acquire the right to a pension (for old age, for disability, for the loss of a breadwinner) are given. The conditions for receiving and the amount of benefits for dependents and child benefits are indicated. The review and analysis of the modern health insurance system in Japan is made. The mechanism of functioning of individual subsystems of the pension insurance system (in particular, insurance at the place of work, insurance at the municipal level, insurance for persons aged 75 and over) is considered. The data on the absolute amounts and rates of insurance premiums, on the specifics of fi nancing the activities of public and private organizations, which, on the basis of the principles of non-commercial activity, provide medical services to the population of Japan are presented. The conditions for receiving and the amount of benefits for the birth of a child, for a funeral, for temporary disability are indicated. Attention is drawn to the distinctive features of the pension and health insurance systems in Japan. It is proposed to use the Japanese experience to reform the national systems of social protection of the population.

Особливості стратегічного планування розвитку пенсійної системи в Україні

Особливості стратегічного планування розвитку пенсійної системи в Україні

Реальні та гіпотетичні ризики майбутнього накопичувального рівня пенсійного страхування в Україні

No decisive steps have been taken in Ukraine to introduce a cumulative level of pension provision. The significant number of risks is one of the reasons for this. The purpose of the article is to study the theoretical foundations of hypothetical and real risks of the cumulative level of the pension system in Ukraine, which is expected to be introduced. A number of methods were used in the study, including abstract-logical, methods of analysis and synthesis and comparative analysis. It is argued that the cumulative level of pension provision will be characterized by a number of real risks: organizational and managerial risk, risk of high administrative costs, risk of depreciation of pension savings, selective risk, and risk of insufficient contributions. Hypothetical risks include market volatility risk and criminal risk. The cumulative level of pension provision is significantly affected by the risk of depreciation of pension savings, because given the high inflation rate and devaluation of the national currency, one should not expect a decent level of pensions in the long term, even taking into account the investment component of the cumulative level. It has been established that the domestic legal framework does not specify a mechanism for protection against such a risk, which undermines credibility to the functioning of the entire cumulative component of the pension system. Selective risk and the risk of financial market volatility are closely related to financial market trends and, under adverse conditions, may manifest themselves in the investment component of pension savings. It has been determined that the mechanism for overcoming such risks has not been defined in regulatory legal acts yet. Jointly, these risks determine the lack of principal steps in the process of reforming the modern pension system. In the case of the introduction of the cumulative level of pension provision, a system should be provided to prevent the risks of depreciation of pension savings and selective risks. Further studies will address the mechanisms that can prevent or reduce selective risks and risks of depreciation of pension savings.

Self-employed and their influence on modern pension system architecture

Self-employed and their influence on modern pension system architecture

Ризики солідарного рівня пенсійної системи України

The article investigates into the main types of risks and their impact on the system of solidarity level of pension provision in Ukraine. The demographic risk is proved to be one of the key factors affecting the formation of modern pension systems. The demographic burden on the working generation is growing due to an increase in the retirement age. Ttherefore, the solidarity system is unable to fulfil its obligations to form an adequate level of pensions that leads to a nominal and real pension reduction. The economic risk affects significantly the solidarity level of pension provision as well. The country’s economic development is the basis for the formation of wages, which in turn also affects the level of pensions. There is no increase in the employees’ real incomes due to the low level of economic growth. Pensions accordingly remain low in the solidarity pension system. The political risk posed by factors of a political nature is considered to be another risk affecting the formation of pension systems. It is proved that these risks collectively predetermine the problems of a modern pension system in Ukraine. The low level of pensions, which led to the impoverishment of a significant number of people who have lost their ability to work, is believed to be one of the biggest problems. Besides, the low level of filling with its own revenues is characteristic to the Pension Fund of Ukraine. Consequently, it is unable to fulfil its obligations without the support of state budget funds. Solving these problems is possible under condition of forming a multi-level system of pensions, especially its accumulative component. It will partly offset the impact of the above-mentioned risks on the solidarity level of pensions

RETIREMENT BENEFIT SCHEME IN UKRAINE: CURRENT REALITIES AND EUROPEAN EXPERIENCE

The subject of the study is theoretical and methodological principles of theretirement benefit scheme formation in Ukraine in the context of eurointegrationtransformations.The purpose of the study is to provide a theoretical substantiation of the essence of Ukraineretirement benefit scheme in the context of European integration transformation, studying theEuropean countries experience in reforming the retirement benefit scheme and the possibilitiesof its application.Research methods. The study uses a set of scientific methods and approaches, includinglogical generalization, systemic, method of comparisons, graphical, which allowed to ensure theconceptual unity of research.Results of work. The article deals with the actual approaches to the «retirement benefitscheme» concept definition, substantiates its essence, defines the methods of social protectionand features of the construction of the national pension system in European countries. Theproblems and perspectives of development of the modern pension system of Ukraine as animportant component of the population social security are researched. The attention is focusedon the problems of reducing the payment of pension contributions, raising the retirement age anddeveloping non-state pension funds.The field of results application. In the field of economics and in the practical activities ofthe structural units of the Pension Fund of Ukraine.Conclusions. The main results of the study and its theoretical and methodological resultscan be reduced to the following wording: the retirement benefit scheme in each country is animportant component of social protection of the population, and the effectiveness of this systemdepends on the welfare of the population and the level of stability in society; the pension systemof Ukraine does not meet the requirements of the present due to complicated problems, whichare caused to some extent by the shortcomings of the existing retirement benefit scheme, theimperfection of the mechanism of its financing. Further study of the European countriesexperience and successful constructive solutions will be useful for their application in theprocess of building and reforming our own pension system, which will avoid negativetendencies, caused by socio-economic realities of modern society.

РЕФОРМА ПЕНСИОННОЙ СИСТЕМЫ В УКРАИНЕ

The article analyzes the features of reforming the domestic pension system, identifies the main problems of its implementation. The author describes the modern pension system in Ukraine; changes of interpretation are revealed and differences and innovatio

РЕФОРМА ПЕНСИОННОЙ СИСТЕМЫ В УКРАИНЕ

The article analyzes the features of reforming the domestic pension system, identifies the main problems of its implementation. The author describes the modern pension system in Ukraine; changes of interpretation are revealed and differences and innovatio

Modern Pension System in Azerbaijan: Challenges and Reforms

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.

Социально-экономические риски функционирования современной пенсионной системы России

Социально-экономические риски функционирования современной пенсионной системы России

FEATURES OF DEVELOPMENT OF PUBLIC PENSION INSURANCE

The article clarifies the peculiarities of the development of the pension system over the last decades and highlights the key stages of its reform. The main stages of the formation of a modern system of pensions are related to the adoption of legislative acts that deal with its improvement. The modern pension system of Ukraine is characterized by a number of negative phenomena: low level of pensions; a significant deficit of the Pension Fund of Ukraine, which is covered from the state budget, the availability of "special" pensions, negative trends in demographic development. Over the past five years, pensions remained virtually unchanged. If the amount of wages has doubled, then the amount of pensions increased by 30%. It should also be borne in mind that the military aggression against Ukraine has caused a high level of inflation and devaluation of the national currency during this period. Thus, the level of material support for Ukrainian pensioners is extremely unsatisfactory. Reforms of the pension system, which were carried out during the last decade, were also aimed at overcoming the budget deficit of the Pension Fund of Ukraine. To this end, the rates of a single social contribution were reduced in order to «withdraw» wages from the «shadow»; increased retirement age for women; Some «corruption" pension provisions for certain categories of population were canceled. However, the budget deficit of the Pension Fund has not only decreased, but also increased. Negative trends in demographic development add a particular danger to the functioning of the pension system. In recent years, the number of people of retirement age has not changed, but the number of young people and the number of children has decreased by 10 million people. In order to stabilize the pension system it is expedient to: refuse to put into effect the accumulative level of the pension system, which may lead to the final collapse of the joint system and is aimed at preserving income for top managers of state enterprises and high-level officials; increase the rate of the single social contribution for self-employed persons; to expand the scope of collecting fees to the Pension Fund of Ukraine; to carry out gradual updating of the size of the pension provision in accordance with the requirements of the International Labor Organization.

China’s Pension Paradoxes: Challenges to Creating an Equitable and Stable Pension Scheme

China’s rapidly ageing population and ongoing economic transformation require an understanding of how China’s pension system has developed and what challenges lie ahead. The modern pension system, a combination of multiple international models, remains tied to the decentralised political and economic structure under which it came into being in the 1990s. Decentralisation has led to a race to the bottom between provinces and municipalities to lower pension contributions, and continues to stymie efforts to centralise or rebalance the system away from capital- and labour-inflow provinces that have more young workers and greater pension surpluses. Policies such as expanding financial investment of the public portion of the system—basic pension funds—point to efforts to address population ageing issues and economic transformation indirectly, i.e. without addressing some of the structural imbalances created by a lack of national pooling. This article provides an overview of China’s pension development, placing it in the context of theories of decentralisation, and looks at how this development informs and influences current policy debates.

ANALYSIS OF SOLIDARITY PENSION SYSTEM OF UKRAINE: PROBLEMS AND MAIN WAYS OF REFORMING

The aim of this work is to analyze the pension system of Ukraine, determine its main problems, and define all necessary steps for further reforming of the system taking into consideration reforms which have been carried out recently. Methodology. The research is based on statistical factors, analysis of demographic rate, level of shadow economy, fiscal burden in the country. Budget index of the Pension fund of Ukraine and level of income and expenditure of pensioners been examined too. The Results of the research have shown that modern pension system requires reforming because it is characterized with a growing number of pensioners, a decrease in their material status together with annual deficit increase in the Pension fund of Ukraine, amount of tax burden and level of shadow of economy. Practical use. Since the number of pensioners is increasing and the number of payers is decreasing, the sum of accumulated income for pensions is decreasing too, which leads to the pension system crash or failure of its main function – to protect unemployable stratum of population. That is why it is necessary to carry out a further reforming to decrease the deficit, improve living standards of pensioners, implement and develop compulsory and optional insurance. Value/originality. The above mentioned ways of reforming the pension system allow to improve the functionality of the pension scheme and material status of current and future pensioners, implement accumulation component which will benefit the development of economy and the country in general.