DEVELOPMENT OF FUNDING PENSION SYSTEMS: INTERNATIONAL EXPERIENCE AND DOMESTIC REALITIES

Abstract

The essence and role of accumulative mechanisms in achieving financial stability of pension provision are studied as well as modern trends in the functioning and development of accumulative pension systems in domestic practice and abroad are identified. The mechanisms of functioning of non-state pension funds in the context of ensuring the well-being of citizens and socio-economic changes are characterized. The dynamics of the main indicators of the voluntary component of the funded pension system in Ukraine for the period 2023–2025 were analyzed, which showed a steady increase in the total value of the assets of non-state pension funds and their investment income against the back-ground of a negligible increase in the number of fund participants, which confirms the strengthening of the financial base of these institutions by increasing management efficiency, rather than an increase in the coverage of the country's population with non-state pension services. Key problems were identified that hinder the introduction of the mandatory component of the funded pension system in Ukraine. Among them: uncertainty of its funding sources during the transi-tion period, weakness of the national stock market and high risks, including inflationary, political, asset nationalization risks, etc. International experience in the functioning of funded pension systems (Chile, Poland, Sweden) was studied and recommendations were formulated on choosing a hybrid model for Ukraine with strong state supervision and inde-pendent private asset management. It is concluded that the further development of the accumulative system is closely related to increasing the efficiency of the country's financial system, its stability and transparency. In this context, it is necessary to create a Central Administrator and a State Guarantee Fund, diversify investments of accumulative pension institutions, set strict limits on commission fees for institutions servicing pension funds, etc. The implementation of these measures will be a prerequisite for increasing public confidence in the accumulative pension system and ensuring posi-tive socio-economic consequences for the economy and an increase in the pension replacement rate for citizens.