Bìznes Inform (Mar 2014)
Dependence of Preservation of Pension Savings of the Second Level on Development of the National Stock Market
Abstract
The article speaks about the issues of necessity of development of the domestic stock market for ensuring investment of pension assets of the mandatory state defined contribution pension insurance. It characterises risks that could arise during introduction of the second level and identifies methods of their minimisation. It pays attention to improvement of the stock market and use of reliable financial instruments for investing pension assets with high level of their profitability. It conducts a comparative assessment of the level of average annual real income of mandatory defined contribution pension systems in individual countries for the past 5 – 10 years. It pays significant attention to the use of state securities in investing pension assets of the second level and characterises requirements that should be set for them. It analyses the use of financial instruments of the stock market for investing non-state pension provision. It studies main financial instruments that could be legally used for investing pension assets at the initial stage of introduction of the second level for their protection and preservation.
