Economic nature of private pension funds

The desire to reach the level of European quality of life standards leads to an increase in the importance of the non-state pension system. Such a system is one of the alternative forms of development of social protection of the population, since it contributes both to the formation of additional pension protection and the ability to meet the investment needs of the real sector of the economy. That’s why the studies of the nature, specifics and principles of operation of non-state pension funds require updating in this aspect. The purpose of this work is a scientific and critical analysis of theoretical approaches to the interpretation of the essence of “non-state pension fund” (NSPF) concept, identifying the characteristics of funds as institutional investors. In the article the author used general scientific and special methods. They are: analysis, synthesis, induction, deduction, comparison, analogy, generalization. The methodological basis of the research is the systematic approach and the dialectical method of scientific knowledge. In the article the author clarifies the distinctive features of non-profit organizations, the main characteristics of an institutional unit and an institutional investor. A discussion on the dualistic nature of non-state pension funds is presented, which is determined both by the goals and objectives of the activities of the NPF and investment management, taking into account the effectiveness of using the tools of the market economy mechanism. The author's interpretation of the economic content of non-state pension funds is proposed. Conclusions. We believe that the role of NSPF, which they are intended to play in the life of citizens from the standpoint of their personal finance, undeservedly remains out of sight in academic circles. So, we propose to consider the economic content of an NSPF as a special organizational and legal form of a financial institution, designed to create an individually significant level of pension provision for citizens due to the redistribution of their income part between capable and disabled life cycle phases through the accumulation of pension savings, preserving and increasing their real value and the further implementation of retirement benefits on an individual basis. Unlike other ones, such an interpretation reveals the importance of the NSPF in planning citizens’ personal finances during their life cycle in order to preserve their social status in case of disability.