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Analysis Of Economic-Financial Experience Of The World Countries In The System Of Pension Insurance

Author

Listed:
  • Natalia Koval

    (Vinnytsia National Agrarian University, Ukraine)

  • Natalia Priamuhina

    (Vinnytsia National Agrarian University, Ukraine)

  • Inna Zhmurko

    (Khmelnytskyi Educational and Scientific Institute of Ternopil National Economic University, Ukraine)

Abstract

The purpose of this article is to analyze the experience of pension insurance systems in Europe, Asia, North and South America, Australia. The defining feature is that the existing pension insurance system in Ukraine does not perform its main task properly, since the rate of pension, for the most part, does not make it possible to maintain a decent standard of living for current pensioners. After analyzing the implementation of the pension reform in Ukraine, it should be emphasized that during the twelve-year period after the pension reform in the country there remain a number of unresolved issues regarding the pension provision of citizens, namely: aging of the population, which is one of the main factors that prompt the government to a new stage of reforming the pension system; the presence of arrears on contributions to compulsory state pension insurance; lack of proper differentiation of pension payments; shadow wages; lack of sound financial instruments for investing pension assets; unsatisfactory level of legal and financial awareness of the population in matters of pension provision; lack of interest of employers in financing non-state pension programs for employees, lack of confidence in the pension system of non-state pension funds. Methods. In most countries of the world, the problems of the pension system, same to what we have in our country, arose. But due to pension reform, they achieved successful results. Each country chose its own way of building a pension system based on its own demographic and socioeconomic features. However, despite this, the main task of any pension system is to secure from poverty and provide a pension that could guarantee a decent standard of living for a pensioner. Results. Ukraine is trying to build the pension insurance system, drawing on the best practice of the countries studied. Practical implications. It is found that the most effective and successful model of the pension system is considered to be Chilean, since the country has been using cumulative and voluntary pension systems for a long time, which are priority and allow to resolve the pension of their citizens financially, prudent and efficient investing of pension funds with lower rates of public investment income. The same model was taken as the basis in Peru, Argentina, Colombia and Kazakhstan. Value/originality. Analyzing the pension reforms implemented in Eastern Europe, it should be noted that part of the changes was due to the need to protect pensioners from poverty in the context of a sharp decrease in the rate of pensions because of the reduction of total pension contributions and the inability of the state to finance previous pension obligations. The real way to reduce the financial burden on employers and the state in the context of a solidarity pension system was to develop levels II and III of the pension system. It is noteworthy to study the foreign experience of the Eastern European country, such as Poland, which was one of the first to introduce a compulsory funded pension system.

Suggested Citation

  • Natalia Koval & Natalia Priamuhina & Inna Zhmurko, 2020. "Analysis Of Economic-Financial Experience Of The World Countries In The System Of Pension Insurance," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 6(1).
  • Handle: RePEc:bal:journl:2256-0742:2020:6:1:1
    DOI: 10.30525/2256-0742/2020-6-1-1-8
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    References listed on IDEAS

    as
    1. Kubicek, Jan, 2005. "Contribution rates to funded pension systems in the new member countries," Research in International Business and Finance, Elsevier, vol. 19(2), pages 266-280, June.
    2. Yuliia Aleskerova & Tetiana Mulyk & Lidiia Fedoryshyna, 2018. "Improving Credit Protection Analysis Methods Reports Of Main Agricultural Enterprises," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(2).
    3. Svitlana Rogach & Larysa Vdovenko & Oleh Polishchuk, 2019. "Agriculture Of Ukraine Under The Joint Policy Of The European Union," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 5(3).
    4. Yuliia Aleskerova & Lidiia Fedoryshyna & Natalia Koval, 2018. "Features Of Loan Security For The Reproduction Of Fixed Assets For Agricultural Purposes," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(4).
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    More about this item

    Keywords

    economic-financial experience; Ukraine; pension insurance; Eurasian countries; North and South America; Australia; personal pension insurance; pension insurance systems; foreign experience;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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