Perspectives of accumulation of funds in the accumulative pension insurance system of Ukraine

  • Received April 15, 2017;
    Accepted May 3, 2017;
    Published June 6, 2017
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.14(2).2017.12
  • Article Info
    Volume 14 2017, Issue #2, pp. 128-138
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The pension system existing in Ukraine does not correspond to the modern requirements of society and needs radical reforms in which the main focus should be on the introduction of a mandatory accumulative pension system. It is shown that accumulation of funds in accumulative pension system (APS) requires complex calculations. A model for accumulation of funds in the accumulative pension insurance system used in this paper makes it possible to determine a set of interrelated parameters – insurance premium rates, reasonable insurance periods, the desired rates of profitability, the required amount of savings, investment potential of accumulative pension system, etc. The amount of funds in accumulative pension insurance system depends not only on the basis of insurance (number of payers of insurance premiums), the amount of contributions (rate and object) and (primarily) on the term of beginning of payments of insurance premiums, the coefficient of profitability of invested funds and guarantees of their safety at all stages of functioning of the accumulative system. The analysis has shown that it is necessary: to cover all people employed in the economy with accumulative pension insurance; a rate of contributions should be determined not only by wages, but also by income; prior to the introduction of accumulative pension system – to create the necessary infrastructure, to develop a legal framework, to organize the management of accumulative funds, to solve the issues related to the protection of funds from the risks of losses. The beginning of introduction of the accumulative system should be postponed till 2020.

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    • Figure 1. The dynamics in the number of pensioners in Ukraine in 1996-2016, thousand people
    • Figure 2. The scheme of accumulation of funds by the accumulative pension insurance system
    • Table 1. Average monthly pensions, average monthly wages and the rate of replacement of wages by pensions in Ukraine in 1996-2016
    • Table 2. The results of calculations of some versions in the functioning of the accumulative pension system