• Alexander Nepp Ural Federal University, 620 000 Mira Str 19, Ekaterinburg, Russia
  • James Okrah Ural Federal University, 620 000 Mira Str 19, Ekaterinburg, Russia
Keywords: Funded pension systems, unfunded pension systems, financial sustainability, social sustainability, demographic risks, retirement age, duration of pension payments


The ongoing distribution of the pension system is on the threshold of losing its sustainability, financially, which has produced a deficit in the budget of the Pension Fund of the Russian Federation and the deflection of pension funds to the distribution system in 2014. This situation was to some extent caused by demographic risks. Funded systems could become the main instrument for mitigating the demographic problem of the distribution pension system. But the problem is, these systems are unprotected to demographic risks as well.

The paper examines the effect of demographic uncertainty on funded pension systems. It describes the process necessary for the financial sustainability of a funded pension system under the force of demographic and macroeconomic factors. It explores the conformity of Russian funded pension systems and that of OECD countries with the status of financial sustainability in the time from 1958 to 2012, making a prognosis for the financial viability prospects. 


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