Importance Unsatisfactory results of the accumulated portion of pension assets functioning and common problems of the pension systems of Russia and Kazakhstan determine the importance of searching for alternative solutions. Objectives The aim of the study is to assess major reforms implemented by the governments of Russia and Kazakhstan to improve the pension system's functioning. Methods We apply the structural and functional analyses of the new approaches to pension regulation and organization in Russia and Kazakhstan to assess the reforms. The retrospective and comparative analyses of the pension reforms in both countries enabled to predict possible outcomes of the reforming process in each country. Results The analysis of accumulated experience of the two countries shows the insufficiency of the reforms. In particular, the shift from obligatory to voluntary contributions to the funded component of retirement pensions in Russia may liquidate the latter, as it happened in Kazakhstan. The introduction of prudential regulation and supervision, and corporatization of pension funds in Kazakhstan failed to improve the funds' profitability and people's confidence in them. One may expect that these methods will not solve the problem in Russia either. The Kazakhstan authorities obliged pension funds to compensate low yield at the expense of their equity capital and to create two portfolios with different risk levels. However, this approach is inefficient, and Russia's experience proves it. Conclusions It is required to further modernize the funded component of retirement pensions and improve the investment climate as a major condition for increasing the performance of pension contributions' capitalization.
Aggarwal R., Goodell J.W. Political-economy of pension plans: Impact of institutions, gender, and culture. Journal of Banking & Finance, 2013, no. 37, pp. 1860–1879.
Barr N., Diamond P. Pension Reform: A Short Guide. Oxford, Oxford University Press, 2010.
Musalem A., Pasquini R. Private Pension Systems: Cross-Country Investment Performance. Social Protection & Labor Discussion Paper, 2012, no. 1214.
Holzmann R. Global Pension Systems and Their Reform: Worldwide Drivers, Trends, and Challenges. IZA Discussion Paper, 2012, no. 6800.
Antolin P. et al. Investment Regulations and Defined Contribution Pensions. OECD Working Papers on Insurance and Private Pensions, 2009, no. 37, OECD Publishing. doi: 10.1787/222771401034
Rozinka E., Tapia W. Survey of Investment Choice by Pension Fund Members. Available at: Link.
Tapia W., Yermo J. Implications of Behavioral Economics for Mandatory Individual Account Pension Systems. Available at: Link.
Klapper L., Panos G. Financial literacy and retirement planning: the Russian case. Journal of Pension Economics and Finance, 2011, no. 10, pp. 599–618.
Ibragimova D. Finansovaya gramotnost' naseleniya Rossii v usloviyakh krizisa doveriya [Financial literacy of the Russian public amid the crisis of confidence]. Available at: Link. (In Russ.)
Barr N. The pension system in Sweden.Report to the Expert Group on Public Economics, 2013. Available at: Link.
Antolin P., Payet S., Whitehouse E.R., Yermo J. The Role of Guarantees in Defined Contribution Pensions. OECD Working Papers on Finance, Insurance and Private Pensions, 2011, no. 11, OECD Publishing. Available at: Link.
Broeders D., Chen A. Pension Regulation and the Market Value of Pension Liabilities: a Contingent Claims Analysis Using Parisian Options. Journal of Banking and Finance, 2010, no. 34, pp. 1201–1214.
McCarthy D., Neuberger A. The Economic Basis for the Regulation of Pensions. UK, Department for Work and Pensions (DWP), 2009.
Plantin G., Rochet J.-C. When Insurers Go Bust: An Economic Analysis of the Role and Design of Prudential Regulation. Princeton University Press, 2007.
Pereverzev I., Kalabin V. Pensionnaya reforma. Vozvrashchenie [Pension Reform. Coming back]. Ekspert Kazakhstan = Expert Kazakhstan, 2012, no. 10, pp. 8–13.
Tumanyants K.A. Dokhodnost' pensionnykh nakoplenii v Rossii: sravnitel'nyi analiz [Profitability of retirement savings in Russia: a comparative analysis]. Vestnik Volgogradskogo gosudarstvennogo universiteta. Seriya 3. Ekonomika. Ekologiya = Vestnik of Volgograd State University, Series 3, Economy. Ecology, 2013, no. 2, pp. 173–181.
