Pension system development and the sustainability of the principle of generation solidarity

The problem of pensions is one of the social topical issues because a complicated demographic situation makes it difficult to observe the principle of generation solidarity in long-term formation of the pension funds. The phenomenon of pension in its evolutionary development has been investigated with an attempt to assess its social significance and efficiency. The given article describes the results of the conducted research in which various pension schemes are compared from the point of view of their social worthiness. The suggested assessment of various systematized public old age pension schemes arranged chronologically, became the basis that allowed creating a short and the most popular assessment of the systematized public old-age pension scheme. It shows that the public old age pension system of this country is based on the principle of solidarity between generations and that this principle has started to use up its positive potential. It will also be the final conclusion. The article examines first forms of old age security; explores some features of systematized pension systems; describes a socially responsible approach to the problem of pension provision by the state; and assesses the principle of generation solidarity as a basis of pension capital formation, the consequences of this principle application, its sustainability and reliability.