Assessment and Utilization of Uncommitted Reserves of the Pension System Stabilization

D. A. Pitilyak, L. P. Dranenko, T. V. Basil, M. A. Chernyaeva
2019 Economics, taxes & law  
The subject of the research is the reserves intended for stabilization of the Russian pension system that could be activated to ensure Russia's entry into the five largest economies of the world.The purpose of the research was to assess the uncommitted reserves of the Russian pension system stabilization taking into account the fact that an increase in the burden on one worker exhausts the already committed functional resources of the pension system. The May presidential address to the Federal
more » ... ssembly in 2018 outlined the main goals: Russia's entry into the five largest economies of the world and an increase in the GDP per capita. The increase in the welfare of the population is, notably, the most important internal source of the country's economic development. Moreover, the Russian President particularly stressed the need to improve the quality of life of the older generation, since an increase in the burden on one employed worker exhausts the existing functional resources of the pension system. Therefore, the government sent a bill to the State Duma on changes in the pension system by raising the retirement age. The following arguments were voiced in favor of the adoption of the bill: the increase in life expectancy in Russia and the threat of insufficient amount of incoming per-worker contributions to finance current pensioners. In view of the above, the paper examines currently uncommitted reserves that might be involved for improving the sustainability of the pension system and demonstrates the economic effect from the implementation of these measures.
doi:10.26794/1999-849x-2019-12-3-103-115 fatcat:qxnqeyrnlzaqnd5meefjau3pnu