SOCIAL AND ECONOMIC COORDINATES OF PRIVATE PENSION PROVISION IN UKRAINE

Abstract

The article deals with the study of the issues related to the functioning of private pension funds in Ukraine. It highlights the key factors hindering private pension fund development in our country. Among other things, emphasis is placed on the issues of financial literacy and the financial culture of the population as important factors in the development of private pension provision. Special attention is paid to the social aspects of the functioning of the private pension system in Ukraine. It is noted that domestic politicians often exploit this issue, "absolving" the state of responsibility for the inadequate standard of living of elderly people. However, the experience of developed countries shows that private pension provision is aimed at solving different issues, and the state should address the key tasks in the pension sector. The article reveals the place and role of private pension funds within the institutional structure of the domestic financial market. A comparative analysis of quantitative indicators of private pension funds' activities is conducted in relation to similar indicators of other financial institutions. It is concluded that currently, private pension funds in Ukraine implement a rather conservative strategy in offering their services to individuals, which largely explains the lag of private pension funds behind other financial institutions. The impact of macroeconomic factors on the functioning of the private pension system is also explored. The necessity of implementing a step-by-step scenario for activating private pension provision in Ukraine and promoting private pension funds in our country is emphasized. It is noted that the prospects for the development of private pension funds largely depend on the state's ability to create an appropriate institutional environment. Macroeconomic volatility significantly reduces the opportunities for the functioning of long-term resources in the national economy. Another important development direction is the digitalization of private pension funds' activities. In the post-war period, the state should fully implement the pension reform.