Models of the creation of the pension capital abroad

The article presents the construction of two dominant schemes of financing the pension system: distribution and storage in the countries with the developed market economy. The distributive type of the pension system is based on the principle of the solidarity of generations. Each participant after reaching early retirement age is charged with the pension of a specific size, which depends on the wages in recent years of working activity and the joint length of employment. A storage model provides that the amount of pension payments is directly determined by the length of employment, by the value of wages and by insurance payments of a future pensioner. The durable systematic accumulation of money (pension payments) is the major principle of the formation of pensions with the storage system.

pension system; financing pensions; distribution scheme; storage scheme; length of employment; insurance payments; retirement age; pension; pension payments; wage