GUARANTEE SYSTEMS IN ACCUMULATIVE PENSION PROVISION AND PROSPECTS OF THEIR IMPLEMENTATION IN UKRAINE

Abstract

The article considers the essence of guaranteeing accumulative pension platforms operating on the principle of defined contributions (DC), names the sources of their formation as well as indicates their main advantages and disadvantages. The main caveats that can limit the effective implementation of guarantee mechanisms in the general framework of the accumulative system and limit the effectiveness of its investment component are indicated. Based on the study of the main models of guarantees used by OECD member countries, it was noted that their architecture depends on many factors (historical, legal, systemic) and there are no single standards that could be applied according to the principle of "universal for all". The study of approaches to the formation of guarantees revealed significant differences, which are explained by the place and role of accumulative systems in the general pension system and its interaction with the public finance system. An effective alternative to guarantees can be the development of effective investment strategies using the architecture of life cycle portfolios. At the state level, it is proposed to implement measures of an institutional, economic, organizational and legal nature that will minimize the negative factors of guarantee mechanisms use and will strengthen reforms related to pension provision. Approaches that could contribute to the balanced and adequate use of guarantee mechanisms as an additional element of the reliability of the accumulative pension system are proposed. Based on the research conducted, the main goal of the state when introducing pension guarantees could be outlined as the protection of pension assets at a level that will not pose a significant threat to final savings, while providing the necessary amount of coverage.