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ИД «Финансы и кредит»






Finance and Credit

The Analysis of the Danish Pension System

Vol. 27, Iss. 8, AUGUST 2021

Received: 17 June 2021

Received in revised form: 1 July 2021

Accepted: 15 July 2021

Available online: 30 August 2021

Subject Heading: Insurance

JEL Classification: H54, H55

Pages: 1852–1870


Svetlana V. FRUMINA Financial University under Government of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Subject. The article focuses on the Danish pension system, which is well known for its reliability and the return on pension savings. The study discusses Denmark, because the number of population (over 80 percent) makes voluntary pension contributions, which resonates with the pension reform in the Russian Federation and the idea of convincing the Russian people make voluntary pension contribution to non-governmental pension funds.
Objectives. I make suggestions on adapting Denmark’s successful practices of using such pension products that provide for voluntary pension pension contributions. I analyze the Danish pension system by tier, statistics on people involved into various pension plans, determine strengths of cumulative mechanisms, which help independently save and preserve the standard of living of working people when they retire.
Methods. The article is based on methods of comparative analysis, induction, deduction, graphical representation.
Results. The article shows the amount of the governmental pension in Denmark, overviews variants of pension plans with definite contributions and payments, points out some common aspects of the Russian and Danish pension systems. I explain why the pension reform is needed due to demographic challenges, such as population aging and the inability of Russia’s pay-as-you-go pension system to ensure the decent living for the retired.
Conclusions and Relevance. The Danish expertise can be borrowed for the Russian practice so as to create the second and the third components (tiers) of the pension system, which would include professional and personal pension plans to be formed on the conditionally voluntary basis The suggestions herein can be used by executive authorities to outline new pension plans. As for the practical relevance, the article adapts some elements of the Danish pension system to the Russian practice.

Keywords: voluntary insurance contributions, pension plan, pension system, insurance company, pension funds


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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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