PENSION PROVISION: FOREIGN EXPERIENCE AND POSSIBILITIES OF ITS ADAPTATION IN UKRAINE

Abstract

The criteria for building an effective pension system and their consideration when carrying out reforms in foreign countries are studied. The priority directions of reforming the pension system of Ukraine have been determined, taking into account the objective socio-economic and security situation. Among the main reasons stimulating the governments of many countries of the world to reform pension systems should be mentioned the growth of deficits of national pension funds and budget expenditures for payments to the elderly against the background of such global trends as the aging of the population, a decrease in the number of pension insurance contributors, an increase in the number of pension recipients benefits and life expectancy in retirement. It was determined that the main criteria that the country's pension system must meet are adequacy, stability, reliability and affordability. The level of compliance with the principles of adequacy, stability and reliability during the reform of the pension systems of individual countries was analyzed. The authors substantiated that compliance with the principle of cost affordability when building a pension system should be considered at the intersection of political and economic factors. Among the political conditions, the mentality of the nation and the attitude of society towards the elderly should be mentioned. Among the economic ones are the level of incomes and the real ability of state financial funds to cover the growing costs of maintaining the elderly. Priorities of pension reforms in foreign countries have been determined, in particular, the introduction of mechanisms for automatic parametric correction of pension systems when certain economic and demographic indicators change, which should be taken into account when carrying out reforms in Ukraine. The implementation of the contingent-accumulation model of the pension system, ensuring the availability of information about the state of pension accounts and the unification of databases of all infrastructural participants of the pension system are also determined to be relevant for Ukraine. To ensure social justice within the framework of the existing distributed pension system, it is necessary to differentiate approaches to calculation of pension payments of depending on the length of service and the amount of paid contributions for certain categories of the population, as well as to develop and implement professional pension plans.