Demographic Factors and Their Impact on the Development of Pension System in Russia

Abstract

The development of the state pension system of the Russian Federation is accomplished within the frames of Strategy-2030 and oriented towards attaining national goals and UN Targets of Sustainable Development. According to requirements of strategic documents parameters of the pension system shall be connected with basic macroeconomic and demographic indicators that can both stimulate and restrict its development. As the pension system is fully integrated in the national finance system, its functioning depends directly on finance relations between participants (employees, employers, the Pension Fund of Russia (PFR) and federal budget). However, demographic factors, such as life-span, gender structure, dynamics of birth and death, etc. act as a limiter of finance relations. The article studies changes in demographic factors and finds the trend of population aging, which could have an adverse effect on pensions of Russian citizens. Irrespective of organizational structure of the pension system and amalgamation of two biggest non-budget funds demographic problem is still an important component that affects pension provision. After-effects of the pandemic, forced relaxation and growing life expectancy of the population decreases the gap between the number of working population and the number of pensioners (coefficient of age dependence), which can result in the necessity to look for additional stimulus to the development of the pension system and raising welfare of pensioners. The goal of the article is to substantiate the trend of demographic aging of the population, which leads to higher load on the pension system.