Russia's Pension Reform: Intermediate Results
Russian Economic Developments. 2012, No. 12
4 Pages Posted: 23 Dec 2012 Last revised: 18 Jun 2013
Date Written: December 22, 2012
Over several recent months, the key issue in the discussion on the Strategy of Long-Term Development of the Pension System of the Russian Federation prepared by the RF Ministry of Labor was reform of the funded component of pension. The critics of the mandatory funded component in Russia usually point to its following drawbacks: low yield on investment; absence of any funding sources for the transition period (the contemporary employed generation has to bear a ‘double burden’: provide financing for the contemporary generation of pensioners and accumulate resources for their own retirement), and lack of any mechanism that can guarantee a yield on accumulated pension savings.
Keywords: Russian economy, pension reform
JEL Classification: H55, J11
Suggested Citation: Suggested Citation