Quasi-mandatory system of private pension provision in the countries of the OECD

Abstract

In terms of increasing life expectancy and ensuing growing burden on state budget and increasing likelihood of longevity risks Private Pension Systems, which provide retirement savings by making contributions to a private pension fund, have come to play a significant role play. According to the OECD (The Organisation for Economic Co-operation and Development) the largest coverage of public participation in private pension systems is observed in the countries with mandatory or quasi-mandatory private pensions, for example implemented auto-enrolment program “KiwiSaver” in New Zealand. In this context, the above mentioned practice is worth incorporating in the Russian pension system.