Challenges of the Mandatory Funded Pension System in the Russian Federation

Rudolph, Heinz P.; Holtzer, Peter

dc.creator	Rudolph, Heinz P.
dc.creator	Holtzer, Peter
dc.date	2012-03-19T18:43:35Z
dc.date	2012-03-19T18:43:35Z
dc.date	2010-12-01
dc.date.accessioned	2023-02-17T21:07:20Z
dc.date.available	2023-02-17T21:07:20Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101230163755
dc.identifier	http://hdl.handle.net/10986/3998
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244968
dc.description	The overwhelming number of contributors that have been allocated into the default option is one of the main characteristics of the Russian second pillar. This finding confirms that the level of financial literacy for most of the participants is not sufficient to make informed portfolio selections. The authors argue that the current system is perfectly consistent with a solid second pillar, but the authorities should focus their attention in the strategic asset allocation of pension funds. Since in the short and medium term it is unlikely to see improvements in financial literacy of individuals that may overcome the complexity of these decisions, the authorities can play an important role in designing default investment portfolios that can be aligned with expected replacement rates for the contributors. The current investment regulation of the default option induces investment in inefficient portfolios that are unlikely to bring returns above inflation, and probably will result in very low replacement rates for contributors. Further liberalization of the investments of the pension portfolio; improvements in the governance and supervision of the pension system; and greater certainty about the ownership of the funds are necessary steps to complete the pension reform launched in 2002.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5514
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	AGENCY PROBLEM
dc.subject	ALTERNATIVE INVESTMENT
dc.subject	AMOUNT OF CAPITAL
dc.subject	ANNUAL RETURNS
dc.subject	ARBITRAGE
dc.subject	ASSET ALLOCATION
dc.subject	ASSET MANAGEMENT
dc.subject	ASSET MANAGER
dc.subject	ASSET MANAGERS
dc.subject	BANK DEPOSIT
dc.subject	BANK DEPOSITS
dc.subject	BANKRUPTCY
dc.subject	BASIS POINTS
dc.subject	BEST PRACTICES
dc.subject	BOND ISSUANCE
dc.subject	BORROWING
dc.subject	CAPITAL INFLOWS
dc.subject	CAPITAL REQUIREMENT
dc.subject	CAPITAL REQUIREMENTS
dc.subject	CENTRAL BANKS
dc.subject	CIVIL CODE
dc.subject	COMMODITIES
dc.subject	COMPETITIVE MARKET
dc.subject	COMPETITIVE MARKETS
dc.subject	CONFLICTS OF INTEREST
dc.subject	CONSERVATIVE INVESTMENT
dc.subject	CONTRIBUTION
dc.subject	CONTRIBUTION RATES
dc.subject	CONTRIBUTIONS
dc.subject	CORPORATE BONDS
dc.subject	CORPORATE GOVERNANCE
dc.subject	CORPORATE SECURITIES
dc.subject	CREDIBILITY
dc.subject	DEBT
dc.subject	DEFINED CONTRIBUTION PENSIONS
dc.subject	DEMAND FOR GOVERNMENT SECURITIES
dc.subject	DEPOSIT PORTFOLIO
dc.subject	DEVELOPMENT BANK
dc.subject	DISCOUNT RATES
dc.subject	DIVERSIFIED PORTFOLIO
dc.subject	DIVERSIFIED PORTFOLIOS
dc.subject	DOMESTIC BANK
dc.subject	DOMESTIC MARKET
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	EDUCATIONAL CAMPAIGNS
dc.subject	EMERGING ECONOMIES
dc.subject	EQUITIES
dc.subject	EQUITY HOLDINGS
dc.subject	EXCHANGE RATE
dc.subject	FEE STRUCTURE
dc.subject	FINANCIAL ADVISORS
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL INSTITUTION
dc.subject	FINANCIAL ISSUES
dc.subject	FINANCIAL LITERACY
dc.subject	FINANCIAL MARKET
dc.subject	FINANCIAL MATTERS
dc.subject	FINANCIAL PERFORMANCE
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SECTOR DEVELOPMENT
dc.subject	FIXED INCOME
dc.subject	FIXED INCOME SECURITIES
dc.subject	FOREIGN FINANCIAL INSTITUTIONS
dc.subject	FOREIGN INVESTORS
dc.subject	FRAUD
dc.subject	FUND MANAGEMENT
dc.subject	FUND MANAGER
dc.subject	FUND MANAGERS
dc.subject	GLOBAL CAPITAL
dc.subject	GLOBAL CAPITAL MARKETS
dc.subject	GOVERNMENT BOND
dc.subject	GOVERNMENT BONDS
dc.subject	GOVERNMENT DEBT
dc.subject	GOVERNMENT FINANCES
dc.subject	GOVERNMENT FINANCING
dc.subject	GOVERNMENT GUARANTEES
dc.subject	GOVERNMENT PENSION
dc.subject	GOVERNMENT SECURITIES
dc.subject	HOMEOWNERS
dc.subject	HUMAN RESOURCES
dc.subject	INCOME INSTRUMENTS
dc.subject	INDIVIDUAL ACCOUNT
dc.subject	INDIVIDUAL ACCOUNTS
dc.subject	INFLATION
dc.subject	INFLATION INDEX
dc.subject	INFLATION RATE
dc.subject	INFLATION RISK
dc.subject	INSTITUTIONAL INVESTORS
dc.subject	INSTRUMENT
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL BANKS
dc.subject	INTERNATIONAL DIVERSIFICATION
dc.subject	INTERNATIONAL FINANCIAL INSTITUTIONS
dc.subject	INTERNATIONAL INVESTMENTS
dc.subject	INTERNATIONAL PORTFOLIO
dc.subject	INTERNATIONAL STANDARDS
dc.subject	INVESTING
dc.subject	INVESTMENT ALTERNATIVES
dc.subject	INVESTMENT DECISIONS
dc.subject	INVESTMENT FUND
dc.subject	INVESTMENT HORIZON
dc.subject	INVESTMENT INCOME
dc.subject	INVESTMENT POLICIES
dc.subject	INVESTMENT POLICY
dc.subject	INVESTMENT PORTFOLIO
dc.subject	INVESTMENT PORTFOLIOS
dc.subject	INVESTMENT PROCESS
dc.subject	INVESTMENT REGULATION
dc.subject	INVESTMENT REGULATIONS
dc.subject	INVESTMENT RETURNS
dc.subject	INVESTMENT RISKS
dc.subject	INVESTMENT STRATEGIES
dc.subject	INVESTMENT STRATEGY
dc.subject	INVESTMENTS IN GOVERNMENT SECURITIES
dc.subject	LABOR FORCE
dc.subject	LEGAL FRAMEWORK
dc.subject	LEVEL OF RISK
dc.subject	LIFE INSURANCE
dc.subject	LIFE INSURANCE COMPANIES
dc.subject	LIQUIDITY
dc.subject	LOCAL BANKS
dc.subject	LOCAL MARKET
dc.subject	LONG-TERM INTERESTS
dc.subject	LONG-TERM INVESTMENT
dc.subject	LONG-TERM INVESTORS
dc.subject	LOW COST
dc.subject	MANDATORY PENSION FUNDS
dc.subject	MARK TO MARKET
dc.subject	MARKETING
dc.subject	MONETARY FUND
dc.subject	MORTGAGE
dc.subject	MORTGAGE BONDS
dc.subject	MULTIPLE ASSET
dc.subject	MUNICIPAL BONDS
dc.subject	MUNICIPAL SECURITIES
dc.subject	OCCUPATIONAL FUNDS
dc.subject	OCCUPATIONAL PENSION
dc.subject	PENSION
dc.subject	PENSION ACCOUNTS
dc.subject	PENSION ASSETS
dc.subject	PENSION FUND
dc.subject	PENSION FUND ASSET
dc.subject	PENSION FUND ASSETS
dc.subject	PENSION FUND COMPANIES
dc.subject	PENSION FUNDS
dc.subject	PENSION ISSUES
dc.subject	PENSION PRODUCTS
dc.subject	PENSION REFORM
dc.subject	PENSION REFORMS
dc.subject	PENSION SAVINGS
dc.subject	PENSION SYSTEM
dc.subject	PENSION SYSTEMS
dc.subject	PENSIONERS
dc.subject	PENSIONS
dc.subject	POLICY RESPONSE
dc.subject	PORTFOLIO
dc.subject	PORTFOLIO ALLOCATION
dc.subject	PORTFOLIO ALLOCATIONS
dc.subject	PORTFOLIO CHOICE
dc.subject	PORTFOLIO DIVERSIFICATION
dc.subject	PORTFOLIO MANAGEMENT
dc.subject	PRIVATE PENSION
dc.subject	PRIVATE PENSION FUNDS
dc.subject	PRIVATE PENSION PLANS
dc.subject	PRIVATE PLACEMENTS
dc.subject	PUBLIC FINANCES
dc.subject	PUBLIC PENSION
dc.subject	QUOTATION SYSTEM
dc.subject	RAPID GROWTH
dc.subject	RATE OF RETURN
dc.subject	RATES OF RETURN
dc.subject	REAL EXCHANGE RATE
dc.subject	REGULATORY FRAMEWORK
dc.subject	REPLACEMENT RATE
dc.subject	REPLACEMENT RATES
dc.subject	RESERVE
dc.subject	RESERVE REQUIREMENT
dc.subject	RESERVES
dc.subject	RETIREMENT
dc.subject	RETIREMENT AGE
dc.subject	RETURN
dc.subject	RETURNS
dc.subject	RISK MANAGEMENT
dc.subject	SALES
dc.subject	SALES AGENTS
dc.subject	SENIOR
dc.subject	SHAREHOLDER
dc.subject	SHORT-TERM DEPOSITS
dc.subject	SOLVENCY
dc.subject	SOVEREIGN RISK
dc.subject	STAKEHOLDERS
dc.subject	STATE BONDS
dc.subject	STATE PENSION
dc.subject	STATE PENSION SYSTEM
dc.subject	SUPERVISORY AGENCY
dc.subject	SUPERVISORY AUTHORITY
dc.subject	SUPERVISORY BOARD
dc.subject	TAX
dc.subject	TERM DEPOSITS
dc.subject	TRANSPARENCY
dc.subject	TREASURY
dc.subject	TREASURY BILLS
dc.subject	VALUATION
dc.subject	VALUATION PROCEDURES
dc.subject	VALUE OF CONTRIBUTIONS
dc.subject	VARIABLE ANNUITIES
dc.subject	WAGE
dc.subject	WAGE GROWTH
dc.subject	WAGES
dc.subject	YIELD CURVE
dc.title	Challenges of the Mandatory Funded Pension System in the Russian Federation
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Europe and Central Asia
dc.coverage	Europe and Central Asia
dc.coverage	Europe
dc.coverage	Eastern Europe
dc.coverage	Commonwealth of Independent States
dc.coverage	Asia
dc.coverage	Russian Federation