Finance and Credit
 

Individual investment account as an alternative to individual pension capital

Vol. 24, Iss. 11, NOVEMBER 2018

Received: 9 July 2018

Received in revised form: 23 July 2018

Accepted: 6 August 2018

Available online: 29 November 2018

Subject Heading: INVESTING

JEL Classification: G11, H5

Pages: 2454–2468

https://doi.org/10.24891/fc.24.11.2454

Markov A.A. Financial University under Government of Russian Federation, Moscow, Russian Federation
markovantonand@yandex.ru

ORCID id: not available

Subject The article investigates the individual investment account as a tool for personal savings intended to complement the government retirement benefits. It shows that the said account is an effective alternative to individual pension capital, which is planned to be implemented in the Russian pension system in 2019–2020.
Objectives The aim is to compare various parameters of individual investment account and individual pension capital to determine the most effective instrument for pension savings accumulation.
Methods I compared the tools of Russian non-governmental pension funds with those of individual investment accounts from the perspective of transparency, title to and descent of invested capital, etc.
Results I offer to use the concept of individual investment account instead of individual pension capital as a more convenient and effective instrument for capital accumulation, which will supplement the public pension benefits.
Conclusions The article presents arguments for pension capital formation by any individual, even if he or she is not deeply acquainted with investment. Therefore, independent investment decisions made through individual investment account can provide more benefits to future pensioner than decisions made by non-government pension funds as part of individual pension capital concept.

Keywords: individual investment account, individual pension capital, pension coverage, non-governmental pension fund

References:

  1. Belomyttseva O.S. [Development of investment tax deductions system in the Russian Federation As a mechanism for stimulation of investments in securities]. Vestnik Tomskogo gosudarstvennogo universiteta. Ekonomika = Tomsk State University Journal of Economics, 2016, no. 2, pp. 99–113. URL: Link (In Russ.)
  2. Vil'danov A.I. [Individual investment account: Tendencies and development prospects]. Global'nye rynki i finansovyi inzhiniring = Global Markets and Financial Engineering, 2016, vol. 3, iss. 2, pp. 153–164. (In Russ.) URL: Link
  3. Bezsmertnaya E.R. [Public investments into financial market tools: the current state and prospects of development]. Ekonomika. Nalogi. Pravo = Economics. Taxes. Law, 2016, vol. 9, no. 6, pp. 17–25. URL: Link (In Russ.)
  4. Belomyttseva O.S. [The system of individual investment accounts in the Russian Federation: the first results and prospects]. Biznes. Obrazovanie. Pravo = Business. Education. Law, 2016, no. 1, pp. 89–94. (In Russ.)
  5. Novozhilov Ya.P. [Prospects and problems of launching of individual investment accounts in the Russian Federation]. Problemy sovremennoi ekonomiki = Problems of Modern Economics, 2015, no. 2, pp. 179–182. URL: Link (In Russ.)
  6. Bundin M.A. [Individual pension capital: Prospects of implementing]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2017, vol. 10, no. 12, pp. 1424–1440. (In Russ.) URL: Link
  7. Kvasov D.A. [The property law on means of pension accumulation in the Russian Federation]. Probely v rossiiskom zakonodatel'stve = Gaps in Russian Legislation, 2010, no. 2, pp. 105–111. URL: Link (In Russ.)
  8. Aksyutina S.V. [The contemporary aspects of non-State pension insurance]. Problemy razvitiya territorii = Problems of Territory's Development, 2013, no. 2, pp. 87–93. URL: Link (In Russ.)
  9. Vereshchagina L.N. [Problems of realization of right for citizen on pension system in legislation of Russian Federation]. Akademicheskii vestnik Rostovskogo filiala Rossiiskoi tamozhennoi akademii = Academic Bulletin of Russian Customs Academy Rostov Branch, 2017, no. 3, pp. 83–87. (In Russ.)
  10. Efimov D.A. [Financial and legal status of non-State pension funds]. Etnosotsium i mezhnatsional'naya kul'tura = Ethnosocium and Interethnic Culture, 2016, no. 3, pp. 51–58. URL: Link (In Russ.)
  11. Kozhina Yu.A., Frolovskaya Yu.I. [Inheriting of means of the accumulation part of pension]. Nasledstvennoe pravo = Inheritance Law, 2015, no. 2, pp. 37–40. (In Russ.)
  12. Lavrenova E.S., Belomyttseva O.S. [Efficiency of pension accruals management in non-State pension funds]. Finansovyi zhurnal = Financial Journal, 2016, no. 3, pp. 115–125. (In Russ.)
  13. Abramov A.E., Radygin A.D., Chernova M.I. [Long-term portfolio investment: New insight into return and risk]. Voprosy Ekonomiki, 2015, no. 10, pp. 54–77. (In Russ.)
  14. Shabarina E.B. [Properties of investing in mutual investment funds]. Sovremennye tekhnologii upravleniya = Modern Technologies of Management, 2016, no. 9, pp. 2–15. (In Russ.)
  15. Abramov A., Akshentseva K., Radygin A. [Mutual Funds Performance in Russia]. Ekonomicheskaya politika = Economic Policy, 2015, vol. 10, no. 4, pp. 60–86. (In Russ.)

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 24, Iss. 11
November 2018

Archive