Globalization as a Factor for Development of Pension System in Ukraine and Iran

The article analyzes some aspects for formation of domestic pension system under the impact of globalization processes. Implementation of three-level pension system was encouraged by globaltendency towards redistribution of responsibility for formation of pension support among state,employer, and citizen on a more matching contribution basis. Pension system components are joint system of obligatory retirement insurance, defined contributions and non-state pension provisionsystem that represent commonly used mechanism to increase social protection of citizens and economicgrowth of the country. Efficiency of pension system funded forms depends on capitalization level of insurance contributions.Therefore arrangement of conditions for successful implementation of their potential as investment resources is the most important goal. The study is focused on the problems of integratingpension system investment resources into the infrastructure of financial market. Analysis of financial market instruments against the background of efficiency of redistribution of pension savings through real sector of economy enabled to make conclusion on contradiction of the achieved level of theirdevelopment with current needs. The main proportion in the structure of instruments falls withinbanking area. Financial crisis has shown inability of banking system to retain stability in the longer term. No alternative instruments for capitalization are available that meet demands of pensionreforming. Comparison of the main macroeconomic indicators of social-economic development ofdifferent states has shown existence of general problems and tendencies. It is pointed out that globalization processes give to crisis phenomena a tone of system structuralimbalance, which makes destructive impact on development of pension relations. Proposals for improvement of pension system concept in the context of social-economic development of the country are developed.

Keywords:

Pension system , Globalization , Ukraine and Iran , Impact , Development