Financing Sustainable Development in an Emerging Economy

The purpose of this chapter is to review the Turkish private pension system as a key determinant of sustainable development of the country. The private pension system is of great significance in order to promote sustainable development. This is attributable to the fact that high level of total savings which are secured through individual savings are conducive to investments and in turn finances sustainable development and growth. Turkey, as an emerging economy, is considered to be one of those economies with low level of total savings. In an effort to deal with this issue, governments paid attention to an increasing level of savings of households. Individual retirement system (private pension system) is devised so as to increase savings and to fund investments with national sources. Therefore, it is safely argued that the very rationale behind the introduction of private pension system is associated directly with the aim of increasing total savings in the economy and ensuring sustainable development.

Organisational Capability for Delayed Retirement

Throughout the industrialised world, societies are ageing. These demographic changes have created a political and societal focus on an extended working life. Unfortunately, there is a lack of systematic knowledge about how such changes can be successfully implemented within organisations. In this chapter, we discuss this lacuna and specifically focus on organisational capability. We highlight workplace conditions and practices that may inhibit or promote the retention of workers beyond the previous norm for retirement.The novelty of an organisational capability approach is that it highlights workplace conditions that enable older people to use their abilities to perform acts of value and to achieve a better quality of life and greater participation in society. Workplace resources, capabilities and functions form a dynamic pattern. Factors that influence the work abilities of older workers are related in complex interactions and not merely in the format of simple cause and effect.When looking at retirement from the perspective of older workers, we have focused on aspects such as the individual’s ability to control the retirement process. Central to Sen’s idea is that individuals have different conversion factors, which means that, even though two individuals may have access to the same resources, they do not necessarily have the capability to enjoy the same functions. For example, the probability that an older person will remain employed will partially depend on his or her health, human capital and type of job. But two seemingly similar individuals can nevertheless have very different chances of remaining employed because their employer has implemented very different age management policies, or simply because they have different attitudes towards older workers. Since organisational capability makes it possible to focus on the interaction between the individual’s resources and preferences and the opportunity structure existing at the workplace (meso level) and embodied in the retirement system (macro level), much of the discussion and many of the policies and practices concerning older people can be related to the concept of capabilities.

Recognition of Older Adults as a Heterogeneous Social Group

Human rights of older adults are still not sufficiently developed. This paper will explore how the rights of older adults are regulated by European law and whether European law sufficiently recognizes older adults as a heterogeneous social group. The population of the European Union is growing older. According to the European Commission’s reports, age discrimination in Europe is widespread. Therefore, the concept of work and retirement system as well as the perception of older adults should be transformed. Discrimination against older adults and various forms of inequality are amplified by the COVID-19 pandemic.

Impact of COVID-19 on Ageing and Retirement System: Key Policy Considerations

The authors attempt to conduct interdisciplinary research in epidemiology demography and pension economics. A literature was selected upon its relevance to the following key words: COVID-19, ageing and retirement system. The following methods are used: Historical content analysis, information, and analytical, comparative analysis. The analysis part is mainly based on secondary data of Committee on Statistics of the Republic of Kazakhstan and world recognized institutions’ reports such as World Health Organization, United Nations and World Bank. In the demographic analysis the traditional and alternative indices of population ageing such as Old Age Dependency Ratio (OADR) and Prospective Old Age Dependency Ratio (POADR) were widely used. By August 5, 2020, Kazakhstan has 94,882 registered cases of CVI, 67031 people recovered and 1058 deaths. Confusion in the demographic statistics of COVID-19 cases showed all the shortcomings. Even though the OADR and POADR ratios are rising in accordance with UN forecast, the global pandemic will adjust the population ageing, since the mortality of the elderly population from this disease is higher than in other age groups. The Kazakhstani retirement system has been suffered by the COVID-19 as well. Human losses, income poverty and increase in pension costs put a burden on state budget. The research presents recommendations on supporting measures in several directions that need to be taken by policy makers during post COVID-19 period in retirement system.

ОКРЕМІ АСПЕКТИ ФОРМУВАННЯ СИСТЕМИ ПЕНСІЙНОГО ЗАБЕЗПЕЧЕННЯ ВІЙСЬКОВОСЛУЖБОВЦІВ В УКРАЇНІ

The article discusses historical aspects in building a system of pension provision for military servicemen representing a specific social institution which in modern realia is of critical importance in addressing the issues of national security of Ukraine. A retrospective analysis of the historical genesis of the military retirement system demonstrates that the government efforts to ensure social protection of ex-servicemen have laid a solid foundation for shaping a common institution for social security provision to population. The study reveals the nature of economic and social significance of the military retirement system. In the context of the modern stage of military retirement system reform, pension as an economic category is understood as a cash benefit, the right to receive which is established by the government according to the current legislation for citizens who meet certain requirements of the national pension system provision. The research findings also reveal that as a social category, after retirement, the pension acts as a guarantor of economic stability of ex-servicemen and members of their families. The efficiency of the three-tier pension system has been substantiated. The study provides evidence on the existence of a normative legal framework in Ukraine regulating the pension provision to servicemen and their families, the implementation of which however is hampered by the lack of a secure comprehensive system that ensures relevant programs for retired servicemen pension maintenance. Apart from the lack of viable mechanisms for the implementation of ex-servicemen pension plans, Ukraine is currently facing a whole range of internal and external barriers to ensuring decent financial security in military retirement. Among such challenges are the high social risks of the current imbalance between the number of retirees and the number of working-age population. In addition, the replenishment pattern of the Ukrainian national pension system is based on the government subsidies by almost 50%, which in the long run may translate into further increase in the tax burden on business, and as a consequence, will lead to its further shadowing. The study suggests creating a robust regulatory system and an action plan aimed at step-by-step waiver of the solidarity-based military retirement system and shifting to a compulsory two-tier accumulation system of mandatory social contributions through the scheme of deductions from salaries and incomes, thus ensuring a relevant financial support mechanism to facilitate appropriate labor remuneration to ex-servicemen.

Impact of precarious employment on retirement planning for young workers and their parents: the case of Hong Kong

PurposeRetirement protection has been widely debated in Hong Kong over two decades. The debate about the relationship between social insecurity and retirement protection, and provoked consideration of a choice between a rights-based universal retirement system and means-tested protection for senior citizens are still contested. This study aims to explore the understanding and behaviours of young workers regarding retirement planning, their difficulties and worries with the implementation of providing support for their parents' retirement.Design/methodology/approachThis was an exploratory study to target young workers aged 20–34 years to participate. Qualitative data presented in this study were drawn from 16 young workers. Seven were female and nine were male young workers.FindingsThe research found that young workers who have a relatively low level of income, particularly for non-standard workers and the self-employed, both are likely to find difficulties to contribute to their own retirement planning and their parents' retirement with the emerging problems of job insecurity and instability. Young working people in lower socio-classes have further limited choices and control over their own retirement planning, as well as providing support for their parents' retirement that may cause a breach of intergenerational contract.Originality/valueWith the increasing number of young workers with precarious employment or unemployment, this study has contributed to a shift in views regarding intergenerational contracts, particularly in the need to support other generations of family members in a contemporary Hong Kong society.

Monetary Stability and the Stability of the Open Society

Historical experience shows that the welfare state is what holds democracy and the market economy together. Neither a welfare state that is too small nor one that is too large can fulfill this connective function. A “stability pact” between citizens and the state is needed: 1. A welfare state to provide citizens security even in their old age. 2. In order to preserve appropriate incentives, the retirement system has to be a form of “saving” (forced saving) for old age. 3. In addition, most citizens also undertake voluntary saving. 4. The state provides for monetary stability. 5. The state uses itsfiscal policy to promote high employment. A modern understanding of personal freedom includes the security provided by a welfare state of appropriate dimensions. It follows that in the twenty-first century, a large part of the wealth of citizens consists of net claims on the state.