FEATURES OF IMPROVING ACCUMULATING PENSION SYSTEM IN UKRAINE

Abstract

The essence of the multilevel pension system is considered, in particular, the main attention is paid to the entry into force of the second stage of the pension reform, namely the accumulation system of compulsory pension insurance. The analysis of the proposed government reform has been carried out and conclusions and proposals on elimination of risks existing in the Law for the present are provided. Today, in general, the basic legal, economic and organizational preconditions and principles of functioning of the third level of the pension system system – voluntary creation of the own pension and the main prerequisites for the introduction of the second level. When investing retirement assets, the company will act in accordance with the requirements of laws on investment directions, markets where investments and requirements for diversification (investing in different directions) of investment investments can be made. The funds accounted for on individual savings accounts of citizens will be the property of these citizens, and they will be able to use them when reaching the retirement age. The size of the pension in such a system will depend on the amount of insurance premiums and the period during which these contributions were accumulated and the size of the investment income received on them. The results of the survey showed that the existing national pension system is one of the main factors that lead to fiscal vulnerability of the economy. This testifies to the urgent need for a comprehensive reform of the pension system with the introduction of an accumulation mechanism and the creation of private pension funds. The main directions of reforming the pension system of Ukraine should be substantial improvement of the joint-stock system; creation of economic conditions for the real introduction of the second level of pensions; stimulating enterprises to create private pension deposit funds in state banks as a prototype of the third level of pension provision.