Comparative analysis of pension systems in western countries.
Pension provision - a matter of national importance
Pension provision occupies an important place in the economic and social policy of any state. And today, the pension system, in force since the last century, most countries have reached their maturity. This means that the majority of workers is covered by pension plans and are eligible for a full pension.
The UN predicts that by 2050, the average life expectancy in the world will be 74 years old, the proportion of people aged over 60 will increase from 11 to 22 % and the number of elderly people compared with the beginning of the XXI century in 40 years will be tripled.
These are not quite optimistic trends raised the issue of financial viability and efficiency of existing systems in the world of pensions. Financial stress felt by these systems is fraught with serious threats. Not least among economic, financial and social consequences of population aging occupy political aspects - pensioners constitute a significant part of the electorate, the proportion of the working population is reduced, and the political power of the elderly relations increases.
To understand what makes our state on the path of reform of the pension system, should pay attention to the pension systems of the advanced states of the world, which provide not posh, but quite acceptable standard of living for its senior citizens.
In many modern states decided to take care of his old age for many years before its occurrence. In most countries the retirement age out in 65-70 years. Now in Europe due to the financial crisis, discuss the issue of increasing the retirement age to 75 and even 80 years. According to experts, this would make pension and health care more accessible and reduce the demographic burden on employment. Raising the retirement age allows people to work longer, which is somewhat easier heavy burden on the young.
In the world's pension systems use two financial mechanisms - distribution and accumulation. The distribution system is based on an agreement generations of pension contributions paid to disabled workers, when current employees become disabled, they will pay pension contributions of future generations. The calculation of future pension may be notional, when it is directly dependent on the size and number of contributions that were made during the operation.
With contributions funded system that deducts the employee to accumulate, and are not earmarked for pensions current generation of pensioners. Upon reaching retirement age pension will be paid to the employee of his savings.
All countries with institutions of social protection and social security, sooner or later have to reform their pension systems. This is due to the increase in life expectancy and a more rapid increase in the number of senior citizens compared to the working population, and continuous improvement of social standards and quality of life.
Prior to the period of pension reform public pension everywhere was based on the control gear. In the 1970s and 80s, when outlined above demographic trends (especially in industrialized countries), under the pension reform realize a complete rejection of the distribution system and the transition to new models, based on various funded schemes and their combinations.
It was believed that the mechanisms are adequate storage market economy and are able to solve the problem of escalating pension due to higher efficiency. Gradually, most of the approaches to pension reform became less radical.
The basic premise is now deployed pension reform - modernization. Modernization - this update, rebirth, which is based on the existing scheme pension and social protection policies population. In a rapidly evolving social, political and economic components of the existence of any state, as well as present-day Kazakhstan, such a measure is absolutely necessary.
According to the UN, Kazakhstan is a country with an accelerated pace of population aging. In this regard, in 2050 a quarter of the population will relate to older persons, and demographic burden on the working population will increase significantly. Given all these circumstances, the purpose of the pension reform in Kazakhstan is to create conditions in which a person in the course of employment would have time to make a decent savings.
An important part of social protection policies in the developed countries is the special working conditions for older people - the ability to use a flexible work schedule, maintain the quality and care for the health. Often, a few years before retirement people change their work: start work as consultants, craftsmen training, go into the family business or just starting a new, not heavy activity.
That's the job in Kazakhstan will spend the next four years to women approaching retirement age, depending on the state of health, life skills and interests, there were various options to complete the work and retirement.
Pension reform - a key national project of modern Kazakhstan. Its main purpose is to provide a decent pension at now working citizens, as well as establishing a direct relationship between the size of future pension and e and voluntary contributions for the benefit of his future pension - in other words - his personal contribution to the pension system.
Old distribution system is completely built on the principle of solidarity - that is, people kept working pensioners. In general, it looked like this: Soviet enterprises earmarked for pension purpose certain percentage of payroll. State, adding a necessary part of the budget, fully spend these funds to pay current pensions. Pensions were similar and relatively high, because, for example, in 1970, every Soviet pensioner had about four employees. In retirement age was numerically small generation past war, famine and deprivation, while the working age entered the largest generation of people born in the postwar decade, when there was a baby boom.
By 1990, this ratio dropped to 2.2 persons, and in 2002 each retiree had only 1.7 working. Today, for every retiree accounts for about 1.5 employee, and in the future the number of employees and retirees equal. In such circumstances, the distribution system is ineffective: distribute become simply nothing.
The key idea of the new pension system is the accumulation. Citizens have the opportunity to save money for retirement in the period of active employment.
Despite the apparent complexity of the current pension system, its logic is quite simple: in the future, the State guarantees you a minimum pension. Anything above - the personal responsibility of each. The more you Skopje upon reaching retirement age - the better you will live in old age.
The two employees with the same seniority and wages pension amount can vary considerably. Everything depends on how conscious worker came to the formation and accumulation of their retirement capital.
It is important to understand that these processes have not only economic, but also demographic reasons: retirement age is now beginning to enter the largest generation born after World War II.
These people will be retiring over the next 15-20 years. In the same age working in this period will include the paucity of the generation born in the 90s of last century, when there was a serious decline in fertility. Since cumulative pension mainly formed due to pension contributions from employers, then described the demographic imbalance will inevitably lead to a reduction in pensions.
The only possibility to avoid being in old age in poverty - to save for retirement in the period of employment.
Target Kazakhstan modernization of the pension system basically has absolutely radical measures: the ongoing transformation of the pension system of Kazakhstan are essentially just update it. Pension system will remain layered. The state will also pay a guaranteed basic pension to continue the existing procedure in the solidarity pension system compulsory level, and will focus on the need for further development and improvement of the funded pillar.
From the extensive international experience shows that most developed countries are constantly reforming their pension system. This need is dictated by the desire to keep up with the times and inspire confidence in the citizens. When pension reforms combined schemes are used, in which cumulative pension system of the population are becoming increasingly popular and are an effective tool for promoting economic growth. Financial institutions, built on funded scheme, coexist harmoniously with the earlier public PAYG pension programs.
Thanks to the citizens of pension reforms around the world today had the opportunity to participate in shaping their future retirement savings by investing them in various financial institutions. Also, international experience shows that the development of private pension coverage significantly increases the economic level of the country and with it the confidence of citizens in the future.
Abroad, various models of pension systems, which include a variety of social protection institutions (state social security, compulsory social insurance, private pension insurance, etc.). Usually constructed from "funded" or "distribution" scheme model in its pure form is rare. Basically, use the combined models, which are differences in the dominance of one of the institutions.
Over the past 15-20 years, many economically developed countries have taken steps to modernize their pension systems in order to adapt them to changing demographic and economic conditions, as well as to give them greater flexibility and financial stability.
In the initial stages of these transformations in some countries (Germany, Italy, USA, France, Japan) attempts to increase the pension system by increasing the size of contributions, which led to the active opposition of both workers and employers.
The second direction of the reform was to increase the retirement age, while preserving the right of early (flexible) retirement.
The third area used by individual countries (France, Germany, Netherlands, Austria) to increase financial flows to the pension system is to increase the base salary, to which contributions are made, by including bonuses and vacation benefits.
An important measure to improve the balance of pension systems is increasing the length of required legislative time to get the maximum pension.
Another focus of the reform of pension systems in some countries has been the introduction of mandatory professional storage systems under state control and supervision (U.S., UK, Netherlands, France) and to stimulate the creation of additional voluntary pension systems of both professional and personal.
The basis for pension reform in Kazakhstan was adopted Chilean model as one of the most revolutionary. The pension system in Chile has no distribution mechanism and is fully based on the accumulation of funds in the individual accounts of employees and capitalization contributions. Every member in the funded pension scheme receives a personal account where it accumulated pension contributions, the amount of which is set and locked. These funds are accumulated and invested by private pension funds, and on reaching the retirement age contributor they become the source of his pension payments. In addition to the basics of the Chilean system Kazakhstani model of perceived and adapted to fit their particular experience of other countries, it is therefore considered one of the most successful in the world.
It should be noted that the development of the draft law "On Pension Provision in the Republic of Kazakhstan" took into account all possible risks assessed prospects and most carefully studied the experience of other countries.
And how are they?
Switzerland has the state, labor and private pension insurance. State insurance exists for all and to ensure a decent existence population of retirees. Maximum state pension does not exceed the sum of 1,400 Swiss francs, which corresponds to the minimum subsistence level. Budget public old-age pension is formed by taxes on tobacco products, alcoholic beverages and charges gaming business. All workers Swiss citizens are subject to compulsory pension insurance. Every fear shall deduct from their wages from 2 to 4% on your personal account and 1% - on the indexation of pensions to citizens who are already receiving it.
German pension system also has three components: compulsory state insurance , commercial insurance and voluntary private health insurance. If the first component is based on the mandatory contributions of the employee's salary and additional payments of the state, the second and third involve voluntary participation - in one case - the employer and the other - the worker when the stimulus state.
Voluntary commercial insurance based on the fact that the company instructs banks, insurance or stock society accumulate contributions made by the employer in the amount of the wages negotiated with the employee.
The basis of pension schemes in the United States more than 60 years served as the main public pension system (Social Security), distributive principle. But over the past decade have developed rapidly private pension system. In the U.S., there are three main types of private pension systems: private pension plans in the workplace (defined benefit plans and defined contribution plans), individual retirement accounts and annuities, i.e. annuity (organized by insurance companies). In contrast to the state pension system, private pension systems are voluntary.
In the model of pension serving in Japan, dominated funded from state social security budget, while other institutions play the role of additional social protection systems.
One of the most innovative pension systems in the world is Chile, whose experience was used by different countries (including Kazakhstan). The retirement age in Chile is 60 years for women, for men - 65. Responsible for the formation of pension savings transferred to the working citizens: each of them has its own retirement account replenishing monthly installments of 10 % of wages in the future listed funds capitalized private management company for the citizen's choice. It should be noted that in Chile there are two main types of receipt of pensions: a life annuity (the insurance company pays benefits to the insured person before the end of his life) and programmed retirement (pension payments are made in a specific pattern, agreed with the insured person). Despite the fact that Chile's pension reform has been operating for over 30 years (since 1981), it is regularly updated.
Prepared by Olga Belova.