STRUCTURAL FEATURES AND TRANSFORMATION CHALLENGES OF JAPAN'S PENSION SYSTEM

Abstract

The article analyzes the effectiveness of the Japanese pension system. This country is chosen as one of the centers of the world "triad" of countries with strong trade and economic global integration. Japan is known as a society with a low fertility rate, which causes similar challenges in the sphere of social security as Ukraine starts to suffer. This country has a unique pension structure, which corresponds with the savings behavior of the society. It is not an example of a model, deeply integrated into the local and foreign financial markets. Otherwise, this country represents a transformational shift from a government model of organizing pension system to a financial market-oriented social system. The analysis of Japan’s pension system helps to develop key steps and features for the reformation of the social security system in Ukraine. In order to upgrade Ukrainian pension system, scientist all over the country should do their best to analyze as many structural patterns of pension system constructions as possible. To conduct the study, the author uses both purely theoretical methods and complex (analysis, synthesis, induction). In the article, the economic and social preconditions for the development of the pension system in Japan are analyzed. The historical transformations of the pension system of the studied country are singled out. The general structure of the modern pension system of Japan is described. The efficiency of functioning of each level of the pension system, as well as their implementation in the financial market, is determined. The results of the study are designed to expand the scope of knowledge of the government of Ukraine on existing models of organization of the pension system. The issue of implementing the transformation of Ukraine's pension system is becoming more urgent every year due to the rising number of retirees in the country, which is followed by the lack of workforce in the low of key economic spheres. In order to avoid social crises caused by hypogene demographic transformations in the society. In the nearest future all steps to soften these transformations should be done and this article is a single element to cope with the social challenges.