MODERN PENSION PARADIGM IN EUROPE

Authors

DOI:

https://doi.org/10.22394/2304-3369-2024-4-68-79.

Abstract

Introduction. Pension systems are a key element of social protection for the elderly. They are designed to provide senior citizens with stable income not from work. However, pension systems currently being devel- oped in Europe are increasingly exposing the working-age population to the risk of poverty in old age. The European pension paradigm strives for an adequate level of pension payments and builds financial protection against poverty, while the future evolution of wages and prices remains unknown for Europe as a whole.

Methods. Scientific research is based on general and special methods of scientific cognition. In the process of forming the concept of the scientific article, modern scientific methods of studying economic and social phenomena were used, including methods of system-structural, functional, factorial and comparative analysis, as well as categorical, logical and structural analysis and synthesis, detailing and generalization, grouping and comparison, identification of cause-and-effect relationships. The authors proceed from an understand- ing of the scientific hypothesis of reforming the pension system, which ensures long-term investment by the working-age population with income in the future. The empirical base of the study was made up of current data from cross-country comparative studies of Europe in terms of typology of state pension systems.

Results. Based on the functional method of cognition, the authors of the scientific article systematize the main types of state pension systems of the European Union, representing the complex content of the indi- cator value of pension payments. It is noted that in the context of reforming the pension systems of the European Union countries, the reorganization of the functional and ideological components of pension pro- vision, aimed at protecting consumers of pension savings, makes it possible to increase the socio-economic standard of living. Although EU pension systems differ in many respects, they all have one common prob- lem - finding ways to maintain the financial sustainability of the budgetary system while paying pensions in the long term against the backdrop of an aging population and the problem of increasing the ratio of pensioners to the working-age population.

KEYWORDS: pension provision, investment, government spending, pension system reform, pension sav- ings, pension payments

 

Author Biographies

  • Oscar A. Molina, Halmstad University

    Halmstad University — senior lecturer of the School of Information Technology; oscar.molina@hh.se. ORCID: 0000-0003-0887-5226, ScopusID: 57208707354.

  • Vyacheslav Yu. Yarin, Ural Institute of Management, Russian Presidential Academy of National Economy and Public Administration

    Ural Institute of Management, Russian Presidential Academy of National Economy and Public Administration (66, 8 Marta St., Ekaterinburg, 620144, Russia) — research fellow of the Center for Social and Economic Research

  • Maya I. Lvova, Ural State University of Economics

    Ph.D. of Economic Sciences; Ural State University of Economics (62/45, 8 Marta/Narodnoy Voli St., Ekaterinburg, 620144, Russia) — associate professor of the Department of State and Municipal Administration; minlvova@mail.ru. RSCI SPIN: 2108-8592, ORCID: 0000-0002-8695-6737, ScopusID: 57212196322, ResearcherID: AAF-6716-2019

  • Larisa I. Yuzvovich, Ural State University of Economics

    Advanced Doctor in Economic Sciences, Full Professor; Ural State University of Eco- nomics (62/45, 8 Marta/Narodnoy Voli St., Ekaterinburg, 620144, Russia) — head of the Department of Finance, Money Circulation and Credit; yuzvovich@bk.ru. RSCI SPIN: 4440-5711, ORCID: 0000-0003-0906-5065

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REFERENCES

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3. HINRICHS, K. (2021). Recent pension reforms in Europe: More challenges, new directions. An overview. Social Policy & Administration, 55(3), 409–422. https://doi.org/10.1111/spol.12712.

4. MARTINI, A. (2021). Socially responsible invest- ing: from the ethical origins to the sustainable development framework of the European Union. En- vironment, Development and Sustainability, 23(11), 16874–16890. https://doi.org/10.1007/s10668-021-01375-3.

5. ELKAMHI, R., LEE, J., & SADIK, S. (2019). Bridging the Gap between Strategic Allocation and Invest- ment Risk. SSRN Electronic Journal, Article 3454958. https://doi.org/10.2139/ssrn.3454958.

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20. DE SPIEGELEER, J., HÖCHT, S., JAKUBOWSKI, D., REYNERS, S., & SCHOUTENS, W. (2021). ESG: A new

dimension in portfolio allocation. Journal of Sustain- able Finance & Investment, 13(2), 827–867. https:// doi.org/10.1080/20430795.2021.1923336.

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Published

2024-08-25

Issue

Vol. 18 No. 4 (2024): Management Issues

Section

Public administration and public service

How to Cite

Molina, O. A., Yarin, V. Y., Lvova, M. I., & Yuzvovich, L. I. (2024). MODERN PENSION PARADIGM IN EUROPE. Management Issues, 18(4), 68-79. https://doi.org/10.22394/2304-3369-2024-4-68-79.