Analysis of revenues dynamics to the Pension Fund of Ukraine

Abstract

The article analyzes of revenues dynamics to the Pension Fund of Ukraine. An assessment of the pension system sustainability and effectiveness is made. Considerable attention is paid to various factors of the Pension Fund deficit, such as: a low contribution rate, a small number of contributions and part-time wages. Comparison of pension revenues and expenses in different countries of the world is made. The relationship between the coefficient of dependence on old age and pension expenses in different countries of the world is shown. Particular attention is paid to the demographic problem of the pension system. Government pension expenditures are divided into four key elements, such as: replacement rate, coverage ratio, age dependency ratio and inverse labor ratio. The amount of additional annual income of the pension fund is calculated. The dynamics of expenditures on pensions as a percentage of GDP is analyzed. The operations of the Pension Fund of Ukraine for the period from 2012 to 2017 are investigated. The essence of transfers from the state budget to the pension fund is revealed. The ways of increasing revenues to the pension fund of Ukraine and reducing its deficit are proposed in order to reach a stable level of pension system of Ukraine. The necessity of pension policy adjusting with aim of the pension system of Ukraine bringing to a stable level was emphasized. The main factors, which make reform difficult in the pension security sphere, are defined, in particular: the difficult demographic situation, the high level of shadow economy, imbalance of budget and political populism. The ways to increase revenues to the Pension Fund of Ukraine and reduction its deficit are proposed. The main stages of Ukrainian pension system reforming, which are optimization of labor and social pension’s size, compulsory pension contributions of working population schemes development and voluntary pension savings of population in non-state pension funds introduction, are recommended.