This article explores the impact of adjustments to the basic pension (
) on lower income groups in the German pension system. This is done by hypothesizing that the basic pension reform is weakening ...status maintenance in the German welfare state for lower-income groups. We analyse monetary gains from the basic pension across different groups. We then adjust the eligibility criteria for the basic pension regarding the length of contribution periods and earning points threshold. From these findings, the paper develops a systematization for what needs to be considered in future pension reforms if the equivalence principle for lower-income groups is to be weakened.
In most European Union (EU) Member States, self-employed individuals receive, on average, lower retirement pensions than employees. Furthermore, the number of self-employed pensioners is lower, and ...there is a significant proportion of self-employed workers in the EU who are not entitled to a retirement pension. The situation is even more delicate for the new self-employed, as their mode of labour market participation, career trajectory, and the income level they reach can potentially compromise their future pension prospects. This paper analyses the position of self-employed workers within national social security systems, with a particular focus on their methods of contribution and the consequential impact on their ability to access adequate retirement pensions as a form of replacement income, thus avoiding the risk of poverty and ensuring a decent standard of living in old age. In this area, the Member States and the EU interact within the framework of their respective competences, with the manifest aim of improving the social protection of self-employed workers in their senior years.
The article is devoted to the assessment of the impact of demographic processes on the volume of expenses for the payment of old-age insurance pensions in the Russian Federation. The purpose of the ...study is to make a forecast of the volume of expenses of the Russian Social Fund budget for the payment of insurance old-age pensions for the period up to 2035, taking into account population fluctuations in 3 scenarios: optimistic, probable and pessimistic. The relevance of study is due is due to the influence of demographic processes on the pension system of the Russian Federation. The results obtained are new, they can be used in the practical activities of the state authorities of the Russian Federation, in the conduct of scientific research and in the educational process, etc. The authors used a multifactorial dynamic model in the form of a system of stochastic differential equations with parameters, and numerical calculations were carried out on a discrete approximation of this model. The authors revealed that with a pessimistic version of the population forecast, the volume of budget expenses of the Pension and Social Insurance Fund of the Russian Federation for the payment of insurance pensions (excluding early appointment) for 2023–2035 will increase by 56.67% (which in monetary terms is 4.22 trillion rub.); with a probable one — by 60.39% (which in monetary terms is 4.50 trillion rub.); with a pessimistic one — by 66.02% (which in monetary terms is 4.93 trillion rub.). It is important to note that any of the forecast, due to the population decline in the forecast period, assumes an increase in the volume of expenses for the payment of insurance pensions at rates below inflation (the latter, according to the minimum estimates of the authors of the article, will amount to 74.76%).
The subject of the study are the processes of reforming pension systems in countries with developed and transition economies and existing and prospective models of combined pension systems: ...modernized solidarity, cumulative and private, which are financially more stable in conditions of demographic and economic changes. The purpose of the research is to study the trends and ways of modernization of the pension system, the need for which is related to the dynamics of the demographic situation, the aging of the population and the threat of a crisis in public finances. Methods of research. To order terminology, refine the conceptual apparatus, determine the content of analytics, substantiate and select arguments, criteria and a complex system of indicators, methods of systematization and generalization, immanent comparative analysis are used. Methodology of the work are the main provisions of the economic theory of the neoliberal social and market transformation of the economy, the work of domestic and foreign scientists and practitioners in the field of modernization of social and pension provision systems. Results of the work. The main scientific result of the research is the theoretical substantiation and practical solution of a set of issues related to the problems of studying modern trends and ways of introducing and developing pension reforms in the world and in Ukraine. Use of results. The results of this study can be used in the study of problems of planning, preparation, implementation and development of pension reforms in the Ukraine. Conclusions. The influence and potential effectiveness of weighted and balanced models of reforming the pension system of the Ukraine in the context of innovations and the dynamics of the development of world pension systems are shown, taking into account the specifics of the experience of implementing pension systems in developed countries and the possibilities of implementing it within the framework of domestic reform of the entire social sphere.
•We have built a transition coefficient model for the unification of China's pension system to solve the problem of horizontal unification and vertical transition in government and public ...institutions.•The transition coefficient is divided into three forms based on the current policy parameter, the moderate replacement rate, and the rate of return.•Our research provides a basis and suggestions for the system optimisation and policy application of China's pension system unification.
In this paper, the transition coefficient of replacement rate is taken as the breakthrough point for studying the pension system unification of China's government and public institutions. We present the basic principles and mathematical model of the transition coefficient for the pension replacement rate based on horizontal unification and vertical transition characteristics using time smoothing methods. We construct a general measurement model for calculating the pension unification transition coefficient and further transform it based on the current policy and the moderate replacement rate. On this basis, we introduce the pension account rate of return in order to simulate the realisation of the transition coefficient and determine the characteristics of the transition coefficient under the different rates of return, thus providing an important reference for the coordinated development of pension unification transition and the individual and occupational pension accounts. Based on this, we put forward relevant countermeasures and suggestions.
The development of integration within the framework of the Eurasian Economic Union actualizes the issue of regulation of pension relations. The adoption of the Agreement on Pension Provision laid the ...foundations for international cooperation in the field of pension provision. However, significant institutional differences in national pension systems may hinder the effective implementation of oldage pension provision.
Aim.
To investigate the possibilities and difficulties of international cooperation in the pension sphere in the context of national differences in old-age pension provision in the countries of the Eurasian Economic Union.
Tasks
. To consider the national pension systems in terms of old-age pensions in the countries of the Eurasian Economic Union and conduct their comparative analysis; to show the features of international regulation of old-age pensions in the countries of the Eurasian Economic Union.
Methods.
In this work, the method of statistical data analysis was used to identify the features of the national old–age pension provision, comparative analysis — when comparing national pension systems in terms of old-age pensions, as well as the method of expert assessments when identifying difficulties of international cooperation in the pension sector.
Results.
Institutional features of old-age pension systems in the countries of the Eurasian Economic Union have been found. The grounds for international regulation of old-age pensions are revealed. Difficulties in the formation of pension rights of citizens of the Union countries have been found.
Conclusions
. The countries of the Eurasian Union faced similar economic and demographic challenges. Pension reforms have resulted in the design of pension systems with national institutional differences, which can become causes of social injustice and pension inequality.
Recent pension reforms have shifted a larger responsibility towards savers. Individuals therefore need better knowledge of the rules and incentives embedded in the pension system to adequately save ...and prepare for retirement. In this paper, we use a novel Swedish survey matched with high-quality administrative data to show that many lack, and feel that they lack, such pension-specific knowledge. We also show that the most economically vulnerable groups know the least. Linking pension knowledge to behavior, we find that knowing less is associated with lower preparedness for retirement, even after controlling for financial literacy and subjective knowledge. Moreover, a large majority state the complexity of the pension system, or that they have planned to learn more about pensions but that it just hasn’t happened, as reasons for why they do not have sufficient knowledge.
O objetivo do trabalho é analisar os impactos do envelhecimento populacional sobre os regimes previdenciários de repartição de três países: Brasil, Espanha e França. Os benefícios e as contribuições ...são calculados com base nas regras atuais e nas projeções populacionais por sexo e grupo etário, até 2100. De 2016 a 2100, o número de benefícios programáveis nos três países deverá aumentar 235%, 54% e 73%, respectivamente. Em 2050, ceteris paribus, o déficit brasileiro será de USD 188 bilhões, alcançando USD 260 bilhões em 2100. Para França e Espanha, os valores corresponderão a USD 134 bilhões e USD 92 bilhões. Em 2100 o déficit per capita espanhol será o mais elevado: USD 7.200, contra USD 5.400 para a França e USD 3.300 para o Brasil. São feitos ainda dois exercícios adicionais. O primeiro é o cálculo da alíquota de contribuição necessária de equilíbrio. Em 2016 a alíquota já deveria ser de 40% para o Brasil, 23% para a França e 32% para a Espanha. Em 2050, se nada for feito, a alíquota brasileira ultrapassará absurdos 100% e, em 2100, superará irreais 160%. O segundo exercício foi o cálculo do benefício médio de equilíbrio. Para a Espanha, haveria redução de USD 884 mensais para USD 372 em 2050. Para o Brasil, o atual benefício de equilíbrio de USD 248 seria reduzido em 2050 para USD 98. O decréscimo no Brasil (60%) é praticamente igual ao da Espanha (58%). Os resultados proporcionam evidências sobre a necessidade de reformas previdenciárias devido ao envelhecimento.
All of the former transition economies
in Central, Eastern, and Southern Europe (CESE) inherited
from the era of central planning traditional defined-benefit
pension systems financed on a ...pay-as-you-go basis. Like many
pay-as-you-go public pension systems elsewhere in the world,
CESE pension systems were in need of reforms to address
short-term fiscal imbalances and longer-term issues relating
to population aging. Reforms were also needed to adjust
benefit and contribution structures to meet the challenges
of-as well as to take advantage of opportunities relating to
the transition to a market economy, including the widespread
adoption of multiplier designs with improved risk-sharing
across funded and unfunded pillars. By 2006, most countries
in Europe and Central Asia had introduced a voluntary
private pension scheme. By 2008, 14 countries roughly half
of all countries in the region had legislated mandatory
private pension schemes, and all but one of those schemes
(the one in Ukraine) had been introduced. These reforms
shared a number of common objectives, in particular putting
the systems on a sounder financial footing and better
aligning them with the (very different) incentives of a
market economy. This report is organized as follows. The
first section discusses the motivation for reform across the
eight countries included in the study against the backdrop
of the regional (and global) trend toward multiplier pension
arrangements. The second section summarizes the key
provisions of the reformed systems in the eight countries
within the World Bank's five-pillar framework for
pension system design. The third section summarizes pension
system performance against the two crucially important
dimensions of adequacy and sustainability. The last section
provides some policy recommendations for addressing gaps in
reforms and taking advantage of further opportunities.
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