scholarly journals Raising the Retirement Age and Pension Insurance Economics

2019 ◽  
Author(s):  
Y. A. Istomina
Keyword(s):  
Retirement Age ◽  
Pension Insurance ◽  
Insurance Economics

scholarly journals NON-STATE PENSION INSURANCE AS A SUPPLEMENT TO SOLIDAR PENSION SUPPLY

2019 ◽  
pp. 102-109
Author(s):  
O. Boiko
Keyword(s):  
Life Expectancy ◽  
Pension Fund ◽  
Pension System ◽  
Insurance Companies ◽  
Retirement Age ◽  
Pension Insurance ◽  
Average Life Expectancy ◽  
The World ◽  
The Right ◽  
State Pension

The main prerequisites for the emergence of problems of the pension system functioning in Ukraine, namely the solidarity system, are considered in the article. The budget, expenditures and deficit of the Pension Fund of Ukraine in the period 2010-2018 are analyzed. The amount of pensions was calculated taking into account the change in the dollar exchange rate and the inflation rate for the analyzed period and it was proved that the increase in the size of the pension does not lead to its actual growth. Emphasis is placed on the principle of calculation of pensions and attention is paid to the concept of a single social contribution, which has the minimum and maximum possible sum of payment. Based on the data, the author compared the size of the minimum (state) pensions in different countries of the world and in Ukraine and showed that the size of the pension is the lowest among the compared countries. An important aspect of the study was the comparison of average life expectancy. This suggests that the increase in life expectancy is causing the states of the world to raise the retirement age in order to delay the payment of state pensions. Alongside this the alternative to state pensions are private pensions. During the working period, every citizen has the right to make savings in different financial institutions as they have the right to invest. Funds that have been saved and multiplied are the main source of retirement income. Voluntary pension institutions are also envisaged in Ukraine. However, despite the legislative support and the general need to have their own retirement savings, citizens do not actively take the opportunity to create additional pensions. The reasons for this are lack of awareness of the population by the state about the essence of the pension reform, the general economic situation in the country, as well as the lack of financial literacy of the population itself, the unwillingness to take responsibility for their future and the low level of income. On the basis of these data, the need for active involvement of both public administration and citizens in the cumulative system is substantiated. Keywords: retirement age, pension fund, cumulative insurance, life insurance companies.

scholarly journals The path forward for sustainability of the pension system in a historical context

Upravlenie ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 40-48
Author(s):  
J. Mertl ◽  
R. Valenčík
Keyword(s):  
Pension System ◽  
Current System ◽  
Historical Context ◽  
Retirement Age ◽  
System Reform ◽  
Pension Insurance ◽  
Individual Productivity ◽  
Merit System ◽  
Pension Insurance System

The long-term sustainability and stability of the pension insurance system can be provided on the basis of a pay-as-you-go system, specifically the NDC variant, which can combine the main type of solidarity (between those who can and want to be gainfully active and those for whom the insured event has occurred) with income solidarity. When reforming the pension system in this manner the opportunity arises to begin gradual changes through fully merit system reform and therefore significantly motivating of extending the period of productivity (putting off retirement) through the upgrade of this system for persons who have reached the retirement age as specified by law.This paper aims to substantiate and explore possible changes in this direction that will not endanger anyone’s entitlements when the reforms are implemented (they have got the form of Pareto improvement), as they derive their funds by extending the time of individual productivity. To this end, the possibility of introducing an extension on top of current system of pay-as-you-go insurance, which could be entered voluntarily by persons who have already reached or are near statutory retirement age, is proposed, and modeled. The extension would operate on the principle that the paid premiums will be transformed into a lifetime annuity. The system would be significantly motivating which for most people means extending life at the fullest, associated with the option to retain beneficial social contacts and gradually relax their gainful activity without experiencing an untoward decrease in income.

Transformation of the Principles of Formation of Insurance Pension Rights in the Context of Increased Retirement Age

2019 ◽  
pp. 67-79
Author(s):  
A. K. Solov’ev
Keyword(s):  
Pension System ◽  
Demographic Factors ◽  
Population Ageing ◽  
Retirement Age ◽  
Time Interval ◽  
Pension Insurance ◽  
Insurance System ◽  
The Future ◽  
The Impact ◽  
Pension Insurance System

The presented study examines the impact of macroeconomic and demographic factors and increased retirement age on the formation of the pension rights of insured persons within the distributive component of the compulsory pension insurance system.Aim. The study aims to use actuarial calculations to substantiate the procedure for the formation of insurance pension rights within the compulsory pension insurance system in the context of population ageing.Tasks. The authors develop methodological approaches to the actuarial substantiation of the formation of pension rights within the distributive component of the compulsory pension insurance system. They also formulate proposals for improving pension legislation to increase the efficiency of the formation of insurance rights within the compulsory pension insurance system and for the Pension Fund of the Russian Federation to achieve fiscal balance, raising the level of pension for the period up to 2050.Methods. This study uses general and special scientific methods of cognition – analysis (economicstatistical, financial, systemic, comparative) of theoretical and practical materials and synthesis, expert assessment, actuarial modeling and forecasting – to examine the formation of pension rights by insured persons within the context of the pension system in various aspects (legal, historical, temporal) and to develop proposals for implementing measures aimed at improving the efficiency of the formation of pension rights in the long term.Results. Analysis of the leading approaches and principles in the formation of the pension rights of insured persons and legislative regulation of this process within a time interval of more than 30 years as well as the conducted actuarial calculations show that it is necessary to create a new mechanism for calculating pension rights in the context of population ageing. There is an obvious need to develop constructive measures based on the results of actuarial calculations to improve pension legislation.Conclusions. Examination of the way the formation of pension rights of insured persons transformed over time makes it obvious that this process is continuously affected by macroeconomic and demographic factors, including natural population ageing, and the measures taken to increase the retirement age. The resulting situation calls for the development of a set of measures aimed at improving the efficiency of pension reforms in the future to fully make allowance for the pension rights of insured persons in the amount of the future pension.

scholarly journals FEATURES OF DEVELOPMENT OF PUBLIC PENSION INSURANCE

2018 ◽  
pp. 126-132
Author(s):  
Andrii Kotsur ◽  
Viktor Ostroverkhov
Keyword(s):  
Budget Deficit ◽  
Pension Fund ◽  
Pension System ◽  
Retirement Age ◽  
International Labor Organization ◽  
Demographic Development ◽  
Pension Insurance ◽  
State Budget ◽  
Social Contribution ◽  
High Level

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.

scholarly journals Linking retirement age to life expectancy in a Bismarckian system – the case of Germany

2016 ◽  
Vol 237 ◽  
pp. R22-R29 ◽  
Author(s):  
Valentin Vogt ◽  
Jörg Althammer
Keyword(s):  
Life Expectancy ◽  
Simulation Model ◽  
Growth Model ◽  
Pension System ◽  
The Other ◽  
Leslie Matrix ◽  
Retirement Age ◽  
Detailed Calculation ◽  
Contribution Rate ◽  
Pension Insurance

In times of decreasing mortality, one way to stabilise a PAYG pension system is to interrelate the retirement age to the anticipated average lifespan. This paper investigates two approaches for Germany: one is to keep the average retirement duration constant, the other to define a constant share of the total lifespan for the retirement period. Our simulation model uses a Leslie matrix population projection, a Solow-Swan growth model and a detailed calculation of the German pension insurance budget. Our results show quite a significant impact on the insurance level and a rather small effect on the contribution rate, which is characteristic of a Bismarckian system.

Assessing the economic potential to increase the retirement age in Russian regions

2020 ◽  
Vol 18 (10) ◽  
pp. 1820-1838
Author(s):  
S.E. Shipitsyna
Keyword(s):  
Pension System ◽  
Retirement Age ◽  
Economic Potential ◽  
Russian Regions ◽  
Pension Insurance ◽  
Original Algorithm ◽  
Regional Aspect ◽  
The Face ◽  
Negative Effect ◽  
Degree Of Differentiation

Subject. This article discusses the further development of the Russian compulsory pension insurance scheme. Objectives. The article aims to develop methodological approaches to assessing the regional aspect of pension insurance and security, showing a high degree of differentiation in the system's development in Russian regions. Methods. For the study, I used a factor analysis integral method. Results. Identifying demographic, socio-economic and financial factors, the article shows a significant variation between the maximum and minimum values of indicators reflecting the state of the pension system in the Russian regions, and significant differences in economic potential in terms of raising the retirement age. Relevance. The proposed original algorithm for assessing the region's readiness to raise the retirement age can be used for any subject of the Russian Federation. Testing of this technique is of exceptional importance in the face of impending economic collapse in the regions due to the effects of the COVID-19 pandemic, which will increase the negative effect of raising the retirement age.

Implications of higher retirement age for the labor market

2017 ◽  
pp. 22-39 ◽  
Author(s):  
M. Ivanova ◽  
A. Balaev ◽  
E. Gurvich
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Labor Supply ◽  
Labor Force ◽  
Labor Demand ◽  
Retirement Age ◽  
Demographic Trends ◽  
Men And Women ◽  
Demographic Projections ◽  
The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

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