SERGEI ZHAVORONKOV: THE SCHEME OF VOLUNTARY CONTRIBUTIONS TO FORMATION OF PENSIONS IS NOT REALISTIC
Sergei Zhavoronkov, Senior Researcher of the Gaidar Institute presented his views to the URA.ru on the general public’s confidence in the pension system.
The scheme of voluntary contributions to formation of pensions is not realistic, nor has any stimuli in terms of tax exemptions, said Sergei Zhavoronkov. According to the economist, people apprehend that they may be deceived and have no motivation in terms of tax exemptions.
"I do not believe that people will be making contributions on a voluntary basis to the fund controlled by the Russian government taking into account those scandals which have been shattering the pension system in the past five years”, said Sergei Zhavoronkov. The expert referred to the situation when the government froze the funded pensions each year: “first they talked about going public and the audit, but later said that they would take it all fr om you”.
Sergei Zhavoronkov notes that the RF Ministry of Finance is well aware of the problem related to the general public’s confidence in the pension system. Officials understand that it is easier for people to hoard money or place their savings into a bank deposit. The Russians do not have any fair motivation to invest in the individual pension capital; to facilitate this process, preferences “here and now” are required, Sergei Zhavoronkov believes.
For the Russians who live abroad, voluntary contributions are even less interesting — "they expect to receive a pension from the state wh ere they live”, the expert notes. At the same time, the Russian state cannot provide them tax benefits in the territory of other countries.
Earlier, the Pension Fund of the Russian Federation called on freelancers and individuals working abroad to participate in the program of voluntary contributions. Also, it has become known of late that the State Duma approved the draft law on freezing funded pensions till 2022.
"I do not believe that people will be making contributions on a voluntary basis to the fund controlled by the Russian government taking into account those scandals which have been shattering the pension system in the past five years”, said Sergei Zhavoronkov. The expert referred to the situation when the government froze the funded pensions each year: “first they talked about going public and the audit, but later said that they would take it all fr om you”.
Sergei Zhavoronkov notes that the RF Ministry of Finance is well aware of the problem related to the general public’s confidence in the pension system. Officials understand that it is easier for people to hoard money or place their savings into a bank deposit. The Russians do not have any fair motivation to invest in the individual pension capital; to facilitate this process, preferences “here and now” are required, Sergei Zhavoronkov believes.
For the Russians who live abroad, voluntary contributions are even less interesting — "they expect to receive a pension from the state wh ere they live”, the expert notes. At the same time, the Russian state cannot provide them tax benefits in the territory of other countries.
Earlier, the Pension Fund of the Russian Federation called on freelancers and individuals working abroad to participate in the program of voluntary contributions. Also, it has become known of late that the State Duma approved the draft law on freezing funded pensions till 2022.