Prospects of introduction of the funded pillar of the pension system of Ukraine

Natalya Stashkevich
Senior Lecturer of Financial Management and Stock Market Department, Odessa National Economic University, Ukraine, e-mail: st.nataliya@mail.ru, ORCID ID: https://orcid.org/0000-0001-8474-8582

Katerina Krasilnikova
Lecturer of Financial Management and Stock Market Department, Odessa National Economic University, Ukraine, e-mail: krasilnikova305@gmail.com, ORCID ID: https://orcid.org/0000-0002-4049-774X

Cite this article:

Stashkevich, N., Krasilnikova, K. (2018). Prospects of introduction of the funded pillar of the pension system of Ukraine. Ed.: M. Zveryakov (ed.-in-ch.) and others [Perspektyvy vprovadzhennia nakopychuvalnoho rivnia pensiinoi systemy Ukrainy; za red.: М. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2 (66), pp. 223‒231.

Abstract

The article analyzes the current state of the pension system of Ukraine. It is determines that the diversification of pension financing of sources is low, the solidarity component is dominates in the pension system of Ukraine. The increase in the role of accumulation principle is due to the influence of demographic and socio-economic factors, and low population incomes to constrain by its development. The essence of the new three-tier pension system of Ukraine is also considered, the comparison with pension systems of other countries is carried out. The non-state pension funds activity is analyzed, the differences between the solidarity and accumulation systems of pension provision, the role of accumulative pension insurance in the system of population social protection, the mechanism of transition to accumulation system of pension provision, the peculiarities of accumulation fund functioning and non-state pension funds, the investment potential of pension savings, and also implementation prospects of mandatory retirement pension systems in Ukraine are considered. The pension provision system is associated with implementation of a cumulative system of compulsory state pension insurance, therefore, in the future it is necessary to look for solutions to the problems of pension provision, to use new approaches to Pension Fund financing, to develop the second level of pension provision, and also reduce the risk of pension accumulations.

Keywords

pension system; pension provision; accumulative pension system; the State Accumulative Pension Fund of Ukraine; retirement accounts; investments.

JEL classification: D140; E440; H530; H550; DOI: https://doi.org/10.33987/vsed.2(66).2018.223-231

UD classification: 331.477

References

1. About non-state pension provision: Law of Ukraine, No. 1057-IV, 09.07.2003 [Pro nederzhavne pensiine zabezpechennia: Zakon Ukrainy, No. 1057-IV, 09.07.2003, available at: http://www.rada.gov.ua [in Ukrainian]
2. On mandatory state pension insurance: Law of Ukraine, No. 1058–IV, 09.07.2003 [Pro zahalnooboviazkove derzhavne pensiine strakhuvannia: Zakon Ukrainy, No. 1058–IV, 09.07.2003, available at: http://www.rada.gov.ua [in Ukrainian]
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