<\/p>\n

Abstract. Introduction<\/strong>. The non-state pension system is the third level of the pension system. The foundation of the system is the NPF, which activity in Ukraine cannot yet be called active. The main function of any state is to provide the senior citizens with a standard of living not less than before retirement and, at the same time, to prevent the deprivation of this vulnerable population. In most countries, non-state pension insurance \u0456s an effective mechanism for optimizing of the state pension insurance system. It makes possible to avoid a number of risks when a person retires. Scientists say that the decision-making process has two dimensions: emotional (primitive) and cerebral (advanced). Accordingly, there are also two dimensions of risk: fear of risk itself (\u00abfear of catastrophe\u00bb) and fear of uncertainty (fear of new or unknown).<\/p>\n

Purpose<\/strong>. Pension risk is characterized by a low level in both of these dimensions – in most people, it causes neither a sufficient sense of catastrophe nor enough uncertainty, and thus does not encourage more adequate preparation for retirement or overcoming the problem of self-control. Thus, the problem lies not with a lack of awareness but with the inability to take appropriate action.<\/p>\n

Results<\/strong>. Undoubtedly, it is of utmost importance to ensure the transparent activity of NPFs on the principles of fiduciary responsibility for the accumulation and investment of pension contributions. The fiduciary responsibility means that NPF managers have a responsibility to be fully committed to the interests of the fund members.<\/p>\n

Conclusions<\/strong>. The development of a national pension system is only possible if a wide range of citizens is involved in NPF activities, which in many countries form the basis of pension systems. In Ukraine, even in the face of the stabilization of the economic situation, the problem lies at the formation of motivated citizens’ desire for personal retirement savings within the NPF. We suggest applying approaches based on the behavioural theory of finance, which has become more active after the global financial crisis. Only under conditions of public confidence can the pension system function effectively.<\/p>\n

Keywords<\/strong>: pension accumulation; private pension funds; financial instruments; accumulation of assets; consumption of assets.<\/p>\n

References:<\/strong><\/p>\n