Efficiency of the Funded Elements of the Pension System: International Practices

The author summarizes key science theories of the funded pension system and its development. The aim of the article is to review and discuss the studies on the efficiency of the funded elements of the pension system from the perspective of international practices. The research methods included generalization; classification and comparative analysis of theoretical and methodological approaches to evaluating the efficiency of a pension system and its elements; abstraction, which allowed us to classify existing pension plans on the basis of the materials presented in the paper; as well as scientific and grouping methods. The theoretical background of the research is based on the scientific studies indexed in Scopus, Web of Science and RSCI (Russian science citation index) for the period 1981–2019. To organize the presented data this period was divided into four stages depending on the role of the funded elements in the public pension system of the reviewed countries. The results of the research are the systematization and classification of the studies under consideration. Cross-country analysis according to the selected criteria showed that distributive pension systems generally demonstrate a higher level of sustainability and efficiency, as well as are better at ensuring a decent standard of living for the population. The author concludes that in order to increase the efficiency of funded elements it is necessary to reduce their influence on the national economic stability; develop additional regulations for pension investment schemes; implement macroeconomic reforms aimed at the development of funded elements, which require a sustainable national capital market. The conclusions and results of the paper can be useful for further development of the Russian funded pension system and analytical work of the public and research organizations.

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