IMPLEMENTATION OF MODERN FOREIGN APPROACHES TO UKRAINIAN PENSION SYSTEM REFORMING

Abstract

A study of the experience of Western European countries in implementing structural reforms of the pension insurance system and the implementation of such experience in Ukraine. The main task of the pension system of any country in the world is to ensure the corresponding stable level of incomes of pensioners and at the same time maintain their financial stability. The increase in the proportion of pensioners increases the burden on pension systems, and mainly measures taken by countries are aimed at reducing pension costs and parametric reforms. Methodology. This article investigates the prerequisites and consequences of reforming the pension systems of the Member States of the Organization for International Cooperation and Development. Considered measures to ensure the financial stability of pension systems of the countries concerned, increased the social and stimulating role of pension insurance in the society. The methodological basis of the article is methods of scientific cognition, which enable to expose basic conformities to the law of development of the pension systems, priority ways to ensure their financial sustainability. Such methods are in particular used: analysis and synthesis – during research of financial indicators of pension systems; systematization – for revealing methods for reforming pension systems, their detailed analysis and the definition of their features; scientific abstraction – with the purpose of forming theoretical generalizations and conclusions. Results. The article investigates the trends of reforming pension insurance systems in some countries. It is established that today the main characteristics of pension reforms in foreign countries are increasing the retirement age, improving the solidary component of the pension system, reducing the role of state pension insurance. Some countries raise their contribution rates; the conditions for early retirement are becoming tougher. Almost nobody decided to reduce the nominal size of pensions, but some countries introduce automatic adjustment of their size depending on the growth of life expectancy, incomes and expenditures of the pension system. In recent years, a number of countries, despite budgetary problems, have introduced tax incentives or co-financing voluntary savings to increase the proportion of citizens taking part in them. Others used nonfinancial incentives to expand coverage. The article outlines the main directions of reforming the pension system in Ukraine, namely, the expansion of the tax base for the working population, the introduction of the second pillar of the pension system, and the popularization of individual funded programs. Practical significance. The necessity of changes in the pension system of Ukraine on the basis of the effects of the reform of pension systems of the leading countries of the world. This made the cardinal changes in the systems in the countries of the world: the transition from financing pensions from current receipts to the system of individual accounts and savings, raising the retirement age, reviewing tariffs and requirements for risk management in pension funds, etc. Importance/ originality: conducted a sample of reforms in pension insurance of foreign countries and offered the possibility of implementing only the part that can be adapted and applied in the light of the individual characteristics of the Ukrainian state.