State Pension System Research Articles

Современная парадигма пенсионного обеспечения в Европе

Introduction. Pension systems are a key element of social protection for the elderly. They are designed to provide senior citizens with stable income not from work. However, pension systems currently being developed in Europe are increasingly exposing the working-age population to the risk of poverty in old age. The European pension paradigm strives for an adequate level of pension payments and builds financial protection against poverty, while the future evolution of wages and prices remains unknown for Europe as a whole.Methods. Scientific research is based on general and special methods of scientific cognition. In the process of forming the concept of the scientific article, modern scientific methods of studying economic and social phenomena were used, including methods of system-structural, functional, factorial and comparative analysis, as well as categorical, logical and structural analysis and synthesis, detailing and generalization, grouping and comparison, identification of cause-and-effect relationships. The authors proceed from an understanding of the scientific hypothesis of reforming the pension system, which ensures long-term investment by the working-age population with income in the future. The empirical base of the study was made up of current data from cross-country comparative studies of Europe in terms of typology of state pension systems.Results. Based on the functional method of cognition, the authors of the scientific article systematize the main types of state pension systems of the European Union, representing the complex content of the indicator value of pension payments. It is noted that in the context of reforming the pension systems of the European Union countries, the reorganization of the functional and ideological components of pension provision, aimed at protecting consumers of pension savings, makes it possible to increase the socio-economic standard of living. Although EU pension systems differ in many respects, they all have one common problem - finding ways to maintain the financial sustainability of the budgetary system while paying pensions in the long term against the backdrop of an aging population and the problem of increasing the ratio of pensioners to the working-age population.

ПРАВОВАЯ ПОЛИТИКА ГОСУДАРСТВ-ЧЛЕНОВ ЕАЭС В СФЕРЕ РЕАЛИЗАЦИИ ПЕНСИОННЫХ ПРАВ

The article discusses issues of legal policy of the EAEU member states in the field of implementation of pension rights of citizens using the comparative method. Based on the legislative practices of states, the author examines the models of state pension systems and highlights their specifics and common, advantageous features. In the process of the study, the essence and direction of reforms of state pension systems were established, aimed at solving a number of problems in reducing social tensions, with the gradual release of the budget from the burden of pension payments, reducing the unemployment rate, which helps to increase the interest of citizens in pension savings and stimulate the personal responsibility of citizens for pension provision for a decent standard of living when acquiring pension rights. It is noted that one of the fundamental principles and norms of international law in the system of protection of social and labor human rights is the right to pension provision, guaranteed by the constitutions of the EAEU member states and their obligations to fulfill the ILO minimum social standards to provide citizens with at least 40% of the level of pensions in relation to average salary. At the same time, states should direct efforts to implement policies to ensure employment, protection against unemployment and the development of non-state investment institutions in the field of pensions.

საპენსიო სისტემის რეფორმის აქტუალურობა საქართველოში

Georgia urgently needs pension reform. The disadvantage of the existing pension model was its pressure on the state budget. At the same time, the resent demographical changes, the increase in the life expectancy of pensioners, active aging in the demographic sector, the tendency of the labor force to decrease, the introduction of universal health insurance and other factors have had a significant impact on the country's economy and have highlighted new challenges that have put the sustainability of the state pension system at risk. The discussion of the need of the pension system reform in Georgia has become more and more active in recent years. It should be emphasized that within the expenditure allocation of the state budget, the largest proportion is attributed to social expenditures, with the state pension system claiming the most significant share. The pension scheme operating in Georgia does not guarantee a sufficient standard of living, it provides only a basic income, and that is why the government has prioritized the need of pension reform on the agenda so that the system responds more to the needs of aging populations and ensures their honorable old age as much as possible.

THE POLICY OF D. CAMERON’S GOVERNMENTS IN RELATION TO THE BRITISH STATE PENSION SYSTEM (2010–2016)

In the article the policy of the first (conservative-liberal) and second (conservative) governments of D. Cameron in relation to the British state pension system at the practical and ideological levels is analyzed and the goals and main content and results of this policy is determined. The author has come to the conclusion that, at a practical level, the activities of the executive authority were aimed at ensuring the stable operation of the state pension system in the face of an increasing rate of population aging, on the one hand, and obtaining electoral support for older British, on the other. In the ideological plane, the policy of D. Cameron’s governments in the considered direction of social policy was of a neoliberal nature, which was expressed in the desire of the authorities to increase the individual responsibility of pensioners for their financial well-being by changing the regulation of the state pension system.

Theoretical Approaches to the Study of the Resource Potential of the State Pension System

This research aims to develop theory and methodology for creating and operating resource capabilities within the infrastructure of state pension systems, focusing on long-term forecasting and ensuring full pension rights for participants. A comprehensive methodological approach was applied, incorporating systems analysis and synthesis, statistical analysis, structural-functional analysis, cause-and-effect relationships, actuarial calculations, and economic-mathematical modeling. Systems analysis and synthesis assessed the pension system as a whole, identifying key components and their interrelationships. Statistical analysis processed data to identify trends, patterns, and anomalies in pension resource distribution. Structural-functional analysis examined the roles of each system element, ensuring stability. Cause-and-effect analysis identified factors influencing resource potential and their consequences. Actuarial methods assessed risks and obligations, aiding long-term planning, while economic-mathematical modeling evaluated internal and external factors, forecasted development, and formulated optimal resource management strategies. Data from various Russian governmental bodies provided the research base. The study emphasizes aligning the criteria for selecting and nurturing pension system employees with those of civil service workforces, recognizing that while reforms have been beneficial, significant challenges remain. The research offers insights into the state pension system's current condition, potential enhancements, and the standards of pension benefits, highlighting the need for ongoing improvement and optimization.

Pessimistic realistic or aware? – Hungarian youth’s pension expectations

Pension awareness is a specific part of financial awareness focusing on material preparation for the years of retirement at an unknown time to start in the distant future. Its starting point is dual: on the one hand, a recognition of longevity risk and, on the other hand, a proper assessment and planning of future options based on the individual’s current financial position. In this study, we wanted to survey the expectations of Hungarian university students about the state pension system, so we conducted online research with questionnaires. Three groups of questions were devised, (i) expectations of the state pension system, (ii) the generosity of the pension system, and (iii) retirement age. Pension-related expectations show that young people, in general, are quite pessimistic and regard the ageing society as the most worrying factor. Expectations about the generosity of pensions are also pessimistic, both in terms of replacement rate and the rate of state pension compared to pensioners’ total income which is estimated lower than it would actually be under the current laws. Expectations of retirement age reflect the European trends; the youth asked typically plan to retire at 65+. We also looked into regional differences and found the youth of Budapest and the Central-Hungarian region were quite negative on every issue while there were differences in other regions. Young people in Northern Hungary have a higher than average positive view of their retirement prospects. The negative attitude can be explained by the lack of transparency of the pension system and limited access to information. Also, because the reform of the state pension system is delayed in this country, respondents have major issues about its sustainability. Our findings can be important input for decision makers to shape the attitude of pension savings and retirement preparations.

An Aging World Relies on Migrant Care Workers

Around the world, societies are aging. Most governments have not prepared well for this demographic change, which requires a recalibration of existing social support programs like state pension and health care systems. Piecemeal state solutions have generated a reliance on migrant workers in elder care. This has worsened global inequalities in health care, subjected migrants to poor working conditions and exploitation, and revived racialized forms of domestic service for wealthy households in high-income countries. Finding fairer and more sustainable solutions to the demographic transition calls for innovative thinking and creative adaptation.

The Bolsonaro Government’s 2019 pension reform in Brazil: a policy discourse analysis

ABSTRACT In 2019, the Brazilian Government secured support to pass radical reforms to the state pension system. Drawing on concepts from historical materialist policy analysis and critical discourse analysis, this paper contributes to understanding how the Bolsonaro Government utilized narratives of inter- and intra-class and generational (in)equity to problematize constitutional guarantees of social and economic rights and warrant fiscal austerity and curtailment of social protections. We contend that the 2019 pension reform can be understood as a complementary political project to the preceding Temer Government’s labor market reforms and successful passing of legislation to place a ceiling on Federal expenditure to constrain pro-welfare politics. Our analysis adds to understanding of how policy discourse legitimated a transformation in Brazilian social policy commensurate with advancing a conservative austere-liberal market hegemony project.

177 Embracing choice: perspectives of older workers on extended working lives

Abstract Background Proposals to extend working lives are a frequent policy response to increasing older populations and associated pressures on state pension systems. However, all the consequences of a later retirement age are as yet unknown, with the perspectives of people potentially the first cohort of workers encouraged to remain in the workforce under-explored. Methods We conducted exploratory semi-structured interviews with 22 people aged between 51 and 63 in service industry occupations in Ireland. Falling just above low-income thresholds, this group were asked about their preparations for retirement, their views on continuing to work beyond anticipated retirement age and what measures, if any, can be implemented to facilitate working later in life. A thematic analysis was performed to provide a rich and detailed account of the perspectives of older workers as they approached retirement age. Results We found a general acceptance of working later in life, however this was contingent on several factors. The overarching enabler was continuing in good health with financial status a key underpinning motivator. For participants with insecure housing, patchwork employment histories and inadequate pension provisions, there was an impetus to continue working to generate savings before retirement. Often with less secure employment trajectories than previous generations, a leisurely retirement lifestyle was a diminishing prospect for our study participants. Working in multi-generational workplaces with the opportunity to shift to mentor roles was welcomed. As retirement approaches, measures such as reducing working hours while protecting existing welfare benefits would encourage people to remain in work for longer. Conclusion The complex and individual nature of continuing to work beyond expected retirement age requires flexible policy responses. An individualised approach to retirement which recognises the increasingly diverse nature of employment over the life-course is needed. This research contributes to advancing knowledge on how the choices of older workers can be facilitated in the context of our rapidly growing older population.

The Strategy for Managing Financial Resources of the Pension System of the OECD Countries and Ukraine

"The article considers the special conditions for the implementation of the strategy for managing the financial resources of the pension system of the OECD countries and Ukraine. A strategic financial and economic mechanism has been developed to assess the quality of financial resources management of the country’s pension system through partial socio-economic and demographic indicators of the economic system. The method of managing the formation, distribution and use of financial resources of the state pension system is determined. The block diagram of the strategic financial and economic mechanism for the management of financial resources of the pension system within the economic and demographic indicators, as well as the parameters of state economic policy is presented. The real value of the replacement ratio per 1% of GDP and the efficiency ratio of the financial resources management of the pension system in the OECD countries and Ukraine are analyzed. The structure of investment portfolios of OECD pension funds is presented. The forecast trend of the demographic burden coefficient and the share of state funding of the pension system to GDP in the OECD countries and Ukraine are determined. The forecast trend of budget revenue and average wages is calculated. As part of the distributive approach to financing pension payments, an old-age pension payment method has been introduced, taking into account the socially acceptable level of income compensation, insurance premium rate, and demographic structure of the population, real wages and changes in social security payers."

Demographic Factors and Their Impact on the Development of Pension System in Russia

The development of the state pension system of the Russian Federation is accomplished within the frames of Strategy-2030 and oriented towards attaining national goals and UN Targets of Sustainable Development. According to requirements of strategic documents parameters of the pension system shall be connected with basic macroeconomic and demographic indicators that can both stimulate and restrict its development. As the pension system is fully integrated in the national finance system, its functioning depends directly on finance relations between participants (employees, employers, the Pension Fund of Russia (PFR) and federal budget). However, demographic factors, such as life-span, gender structure, dynamics of birth and death, etc. act as a limiter of finance relations. The article studies changes in demographic factors and finds the trend of population aging, which could have an adverse effect on pensions of Russian citizens. Irrespective of organizational structure of the pension system and amalgamation of two biggest non-budget funds demographic problem is still an important component that affects pension provision. After-effects of the pandemic, forced relaxation and growing life expectancy of the population decreases the gap between the number of working population and the number of pensioners (coefficient of age dependence), which can result in the necessity to look for additional stimulus to the development of the pension system and raising welfare of pensioners. The goal of the article is to substantiate the trend of demographic aging of the population, which leads to higher load on the pension system.

STATE FINANCIAL INCLUSION AS A DRIVER OF MODERNIZATION OF THE PENSION SYSTEM OF UKRAINE

The article considers the policy of state financial inclusion as a driver of modernization of the pension system of Ukraine. A systematic approach to the regulation of state financial inclusion policy and its indicators has been developed, which provides the optimal model for financing pension benefits and social needs of the working age population, taking into account the modernized hierarchy of the pension system and its efficiency in allocating budget resources. It is substantiated that financial inclusion in the system analysis of the state pension system is a platform of the general theory of systems, includes a number of interconnected components of the open financial system from the standpoint of allocation of budgetary resources to social needs. It is proved that the systemic approaches to the use of the methodological paradigm of financial inclusion in the pension system focuses on various aspects of the budget financing process and reflects the conceptual platform for the development of pensions. Models of pension systems and methods of the World Bank according to the levels of pension provision are presented. The directions of financial inclusion in the state pension system in the context of “state – business – society” and the scheme of optimization of state financing of social programs of the pension system are given. The size of pensioners by types and size of pensions in the regions of Ukraine, the coefficient of replacement of lost income in Europe is analyzed. The ratio of the own revenues of the Pension Fund of Ukraine is determined, taking into account the part of the paid single contribution to the obligatory state social insurance, divided into the obligatory state pension insurance to GDP. The total current pension expenditures from GDP in European countries are estimated. The scheme of actuarial calculations of pension provision in the state financial inclusion of the pension system for short-, medium- and long-term periods is proposed.

The Resource Potential of the State Pension System and Related Social Services as an Object of Research

The article examines the theoretical foundations of the formation of resource potential and gives its characteristics as an object of research. It is noted that the functioning of the current pension system results in a shortage of financial resources, significantly reduces the opportunities for the development of the market of high-quality pension and social services. The concept of "resource potential of the pension system" is defined through the legal, social and economic content of its characteristics. The elemental structure of the resource potential and its probabilistic nature are considered. The necessity of using a set of systemic and integrated approaches in the study of the financial potential of the pension system is substantiated. Recommendations for improving the use of the resource potential are proposed.

Pension System for the Rural Areas in Actual Social and Economic Conditions in China

The article first describes and analyzes China's social support measures for rural population from 1950s to nowadays. It depicts the indistinct stages of pension system institutionalization from the time it appeared and up to the present. The major Chinese society peculiarity lies in a huge gap between standards of living in the city and in the country. It has its present characteristics due to the historical environment of official employment in Chinese villages and the previous absence of social and pension governmental support as its circumstances. In the study latent periods of switching from one pension form to the others are revealed. The fact is that China's social support measures for rural population has only history of one hundred years. However different pension forms replace each other dramatically during this time while special aspects of moral issues, family relations and social structures of Chinese society complicate the situation. Various aspects of rural pension policy in China are underexplored for that moment. The paper fills this important gap and gives much attention to its social, cultural and economical aspects. Evolution of Chinese rural pension policy starts from the "Five Guarantees" system, continues with the "Baoji model" and concludes with the "New Pension System" development. This system is to equalize rural and urban pension rights in China. In conclusion due to the National Social Policy only from 2014 every Chinese rural citizen aged 60 and older has pension entitlements. This fact can indicate that the primary maturity of China’s state pension system for old-age rural population has been reached.

What hypotheses can research on son preference in Asia offer for European historical demographic research?

ABSTRACT What insights can studies of son preference in Asia offer European historical demographers? Research on Asia is far easier than on historical Europe, given the scope for in-depth studies of a contemporary phenomenon instead of using available historical data. Levels of sex-selection have also been high in Asia, which makes it easier to analyze its correlates. This enables developing hypotheses that might be useful in studies of historical Europe. Studies in Asia indicate that, in rigidly patrilineal societies, son preference forms part of households’ strategy for managing their assets and risks. The extent of sex-selection varied enormously over time within a given setting, rising sharply when households faced heightened risk --- such as war, or the unwinding of Communist regimes that offered communal access to resources --- and decreasing as modern state pension systems mature. These household strategies also affect the life-chances of other household members, including marriage restriction to reduce asset fragmentation. Kinship systems shape the rights of different categories of household members and the norms of cooperation between them — including between generations, spouses, and siblings of different genders and birth orders. This paper offers some hypotheses on the implications of variations in patrilineal kinship systems in Europe for the life-chances of different categories of household members. For purposes of constructing hypotheses that can be tested if data permit, the European kinship systems are contrasted in a stylized way, as those based on a ‘lifeboat’ ethic of jettisoning non-heirs from the household, versus those based on a more ‘corporate’ ethic in which the household seeks to support all its members. Historical demographers working on Europe have rich fields to explore, given the region’s diversity: of kinship systems, of economic opportunities, and of exposure to major risks such as wars, famine, and the establishment and dis-establishment of Communism.

URGENCY OF PENSION REFORM IN GEORGIA

The article discusses the urgency of pension reform in Georgia. The disadvantage of the existing pension model was its pressure on the state budget. At the same time, the recent demographical changes in Georgia revealed new challenges and put at risk the sustainability of the future state pension system; The previous pension system in Georgia would not have provided the old aged citizens with so called “Decent pension” that’s why there was an emergency of a new reformation. It is worth mentioning, that global aging is the history of world success. Nowadays people live longer. This is the triumph of social health security, shown up by establishing healthy life style, pharmaceutical market, generally citizens’ social-economic conditions and economic promotion as well. Aging process affects economic increase, formal and non-formal supporting system and mobilization of supporting resources for elderly citizens from the Government’s side. Nations should admit the global context of the problem, realize new demographic reality; However making some corrections in pension policy might be painful for elderly groups. Key words: Relevance of reformation, demographic changes, active aging, budget pressure, usefulness of the reform , rate replacement, accumulating pension system, pension indexation.

Inheritances and work for pay - will the expected wave of bequests undermine active ageing policies?

The online version contains supplementary material available at 10.1007/s10433-022-00706-1.

���� ����������� �������� ����� � ������������ ���������-����������� �������� ������

Abstract. Introduction. With the constant growth of the deficit in the financing of pension benefits and the real threat of the state's inability to guarantee pensions, the role of the private pension system is growing. The burden on the state pension system leads to an increase in the financial burden for individuals and legal entities, due to increased contributions to the state Pension Fund, which leads to a decrease in the amount of financial resources for the development of its activities. Purpose. The purpose of the article is to analyze the activities of private pension funds in the current socio-economic development of the country.Results. The effective functioning of the national economy depends on the level of financial security of various economic entities. With the help of mobilization of their funds there is an active distribution and redistribution of financial resources between different sectors of the economy. A developed system of financial institutions is needed to develop the process of accumulation of free money. They are the ones who transfer capital from those who have savings and those who need it. Among many types of financial institutions, private pension funds deserve considerable attention. Given the practical absence of a funded system of compulsory state pension insurance, as well as the insufficient level of funding for the solidarity system, they contribute to improving the economic well-being of the population. By concluding an agreement with the NPF, each citizen can determine the amount of future additional non-state pension benefits. Thus, without the effective functioning of the third level of the pension system, the financial security of the population in old age will be minimal, which will reduce the economic development of Ukraine as a whole. Conclusions. For the effective functioning of the NPF network in Ukraine it is necessary: - ensure transparency of NPF activities and increase protection of the rights of their participants; - to establish a fund for guaranteeing pension contributions of participants, which would return part of such contributions in case of bankruptcy of the selected NPF. This would increase public confidence in these financial institutions; - to improve and modernize the regulatory framework related to NPF risk management; - take measures to improve the financial literacy of the population and increase public interest in participating in the private pension system; - reduce the taxation of payments to NPF participants when they reach retirement age; - provide tax benefits for legal entities - founders of NPFs, with a significant number of participants; - to ensure the development of the financial market in Ukraine, which will expand the range of financial instruments in which NPFs can invest.

Problems and Perspectives in Pension System: Case of Baltic States

In all states of European Union reforms in pension system are being made, likewise in Latvia. Demographic and economic problems that are occurred forces pension reforms to be made. New developed pension reform includes different processes, like – formation of financial equilibrium between incomes and costs, limit performance in going early in pension, increasing of age of going in pension, rebalancing between men and women. Simultaneous formation of state and private pension systems could prevent some of the major drawback in system of pension that undermines the pension system of nowadays. Unfortunately the high social security contributions of state sector persons lacks of money, for deposit in private pension funds. Using method of logic synthesis, as the target authors nominated to examine problems of pension systems in the Baltic States, as well as similarities and divergences in problems and perspectives, with the status of private pension funds in accumulating pension system.

The Missing Politics of UK Pensions Provision

AbstractPensions provision in the UK has been undergoing upheaval for several decades, as an already liberal regime has gradually been further liberalised, resulting in the rollout of defined contribution provision via the pseudo‐compulsory automatic enrolment system. Yet, the system is dysfunctional, insofar as it replaces the institutional guarantors essential to pensions provision with hazy notions of individual responsibility. The ability of capitalism to reproduce itself is jeopardised as a result. Increasingly, the state, despite scaling back the state pension system, is intervening to subsidise and substitute for a marketised system. Despite the significant risk of poor outcomes for millions of savers in the automatic enrolment system, and the integral role of the state in private provision, pensions policy receives little attention in political debates, or by political scientists. This is driven in part by a lack of salience among the public, which is itself a result of the peculiar temporality of pensions. Yet it is a product also of the disciplinary norms of political science, and the positionality of political scientists.