Modern trends of foreign pension systems' development

Subject of research – pension systems of foreign countries. Aim of research is to determine regularities in the process changing of modern foreign pension models. Methods of research. Author applied set of scientific methods of research, inter alia analysis and comparison – while studying foreign experience of pension provision; theoretical synthesis, systemic and structural methods - while determining contemporary tendencies in the process of reforming pension systems. Results of research. Grounding on the analysis of the pension models used by western countries at the contemporary stage of civilization development, general tendencies in the processes of reforming of pension systems caused by demographic, economic and political factors are defined. For instance they are:, carrying out of the indexation of pensions in correlation with possibilities of country's budget; planned increase of retirement age taking into account parameters of health of pensioners, according to the results of relevant studies, and taking into account increasing figures of lifetime in the country, flexible definition of the period of living out; funding of state-guaranteed pensions in expense of general taxes; increasing of role and participation of the employee in composition of his/her future of pensions, stipulation of ownership rights on the generated savings for the employee; creation of a culture of pension savings as prerequisite for the development of voluntary forms of accumulation; correlation of record of service with the size of state-guaranteed payments. Experience of countries that occupy leading place in the rank of index of sustainability of pension systems is investigated. It is established that pension models combining state pension (which provides minimum essential standard of living) and strong accumulation part are the most resistant to the risk factors in the sphere of pension provision. Application of results. Results of this study can be applied in the practice of reform of national pension systems. Conclusions. Analysis of pension systems in foreign countries and trends of their development confirms the necessity of reforming national models of pension provision, taking into account the degree of development of the economy, pension system and the state of its institutions, but general patterns of these reforms are: restructuring of state pension provision in the direction of reducing state expenditures on the pension system (in particular, payment of minimum pensions by the state from the budget in account of tax revenues); development of cumulative pension system and private pension funds; if necessary privatization of separate parts of pension programs, provision of possibility of diversified investment for available trust or create new ones; changing of the base of pensions calculation, taking into account downward trend in employment in automated production