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Population Aging and Its Impact on the Country's Economy
Author(s) -
Lukyanets Artem,
Okhrimenko Igor,
Egorova Maria
Publication year - 2021
Publication title -
social science quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.482
H-Index - 90
eISSN - 1540-6237
pISSN - 0038-4941
DOI - 10.1111/ssqu.12936
Subject(s) - prosperity , pension , dependency ratio , population , social security , population ageing , retirement age , old age security , economics , government (linguistics) , state (computer science) , development economics , economic growth , demographic economics , sociology , market economy , demography , birth rate , fertility , linguistics , philosophy , finance , algorithm , computer science
Objective The present article raised the pressing issue of population aging in Russia and investigated the challenges thisphenomenon poses to the social security system. As modern studies show, this challenge is typical for both developing anddeveloped countries. The paper intended to propose ways of reforming the pension system of the Russian Federation to ensure its independence from the state budget. Methods The provided suggestions were based on the analysis of the current demographic problems in Russia, review of the dynamics of its population age composition, consideration of the most popular strategies for reforming pension systems in developed countries, and the specific features of the Russian labor market. Results Currently, forRussian Federation, the population over the working age grew by 11.6%, and number of the working‐age people and those under the working‐age decreased by 9.3% and 5.6%, respectively. The inverse dependency ratio ranged from 2.2 to 1.7 in 2019 to the level of 1.78 for 10 years. As a result, it was noted that ignoring the issue of population aging can lead to a decrease in state budget stability and adversely impact the country's economic prosperity. Conclusion The novelty of the research lies in selection ofthe main problems of reforming country budgets in connection with the increase in the number of elderly people and changes in the dynamics of pension contributions in connection with the growing expectations of the population. Among other things, the article also highlighted the presence of additional difficulties that may accompany the implementation of the proposed measures.