Pension Policy and Population Ageing

E. Gurvich
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E. Gurvich: Economic Expert Group, Moscow, Russia

Journal of the New Economic Association, 2019, vol. 42, issue 2, 177-186

Abstract: We are demonstrating that retirement age increase that started in Russia in 2019 was an inevitable implication of adverse demographic trends combined with the policy of keeping constant ratio of average pension to average wage, pursued by the government in 2010s. More general 'Pension Trilemma' is proposed which states that if number of pensioners per employee is rising there is no way to keep fixed pension benefit to wage ratio and retain pension system sustainability. Higher retirement age is acceptable as an increase in life expectancy (the major cause of population ageing) when it is accompanied with proportional growth of the 'healthy life expectancy' which is in a sense proxy for the age of incapacity for work. New indicators of ageing are defined as average numbers of years spent by members of a particular cohort in a working age and in retirement. We demonstrate that their ratio is rapidly shifting in Russia towards retirement period starting mid-2000s.

Keywords: pension reform; retirement age; population ageing (search for similar items in EconPapers)
JEL-codes: H55 J11 J26 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2019:i:42:p:177-186

DOI: 10.31737/2221-2264-2019-42-2-10

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