On the Issue of Prospects for Realization of the Causal Relation Between Pension Provision and Socio-Economic Development

• Main Author: Movchun Svetlana V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2018-11-01
• Series: Bìznes Inform
• Subjects: principles and functions of the State; pension provision; adequate pension; social protection; permanence of the pension system; replacement coefficient
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2018-11_0-pages-265_271.pdf
• ISSN: 2222-4459; 2311-116X

The article is aimed at finding ways to realize the causal relation between pension provision and socio-economic development of the State. The relation between economic functions and principles of the State that directly impact both pension provision and socio-economic development is analyzed. On the basis of results of the carried out analysis a conclusion is drawn that there is no harmonious combination of functions and principles of the State in Ukraine. It is substantiated that the calculation of wage replacement coefficient does not meet international standards and does not take into account the guaranteed lost income replacement coefficient, which impacts the size of pension payments. The author suggests to expand the terminology apparatus by introduction of the scientific concepts of «adequate pension» and «constancy of pension system».