The pension reform in Russia: yesterday, today, tomorrow
Subject The paper deals with the new pension reform launched in Russia January 1, 2015. The Russian residents have to decide on the funded part of their retirement benefits, i.e. keep or invest it through non-governmental pension foundations or add this 6% amount to the insurance part. Objectives The research unveils the objectives of the pension reform in Russia and sets out a new formula for the retirement benefit calculation. We also prove that it is unbeneficial for the Russian citizens to keep the funded part and transfer it to the insurance amount held with non-governmental pension foundations. Methods We applied methods for analyzing scientific and information basis, synthesis of data to make conclusions and practical recommendations. The theoretical underpinning comprises scientific proceedings and researches of national and foreign scholars in the theory and practice of bank services. Results We determined the results of the previous pension reform Russia launched in 2002, and results of non-governmental pension foundations' investment of pension savings. The article reviews the efficiency of the funded part of the pension system and illustrates a new formula for retirement benefit assessment. We prove it is unbeneficial for citizens to keep the funded part and transfer it to the insurance part held with non-governmental pension foundations. The article proposes a set of measures to improve the current pension reform and additional sources of budgetary proceeds for the Pension Fund of the Russian Federation. Conclusions and Relevance Modern Russia has all possible opportunities for making retirement benefits substitute at least 50% of lost income. This can be attained within 6-8 years.