Population Aging and Its Impact on the Country's Economy

Abstract

Objective. The present article raised the pressing issue of population aging in Russia and investigated the challenges this phenomenon poses to the social security system. As modern studies show, this challenge is typical for both developing and developed 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, for Russian 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 of the 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.

RETRACTED ARTICLE: A conversational analysis of aging in China from a cross-section of the labour market: a corpus-based study

“…They appear to be more urgent in China, given the following circumstances. China failed to reach a sufficient level of national wealth per inhabitant, and coverage of the country’s pension system is uneven (Li et al, 2018 ; Lukyanets et al, 2021 ; Wang, 2019 ). Therefore, the socialisation of older people is crucial for preserving the workforce and maintaining a healthy psychological climate in a country with a rapidly ageing population (He et al, 2019 ; Li et al, 2021 ).…”

“…Social participation and engagement in paid work are the most crucial factors in maintaining social resilience. In many developing countries, ageing populations can heavily influence decision-making and choice processes (Lukyanets et al, 2021 ; Webster and Pierce, 2019 ). Ageing contributes to the formation of multi-age groups where relationships are age-driven.…”

Regional impact of aging population on economic development in China: Evidence from panel threshold regression (PTR)

“…Based on the above studies and theories, many scholars use linear models to study the impact of the aging population on economic growth, but this research method has major flaws. For example, Yang et al [3] found that the aging population would inhibit economic growth by reducing the ecological footprint; Lukyanets et al [4] also found that the aging population would reduce economic growth in Russia; Scott et al [5] and Liu [6] got the same conclusion. However, Pham and Vo [7], Mamun et al [8], and Wang et al [9] found that the aging population would promote economic growth.…”

The Sustainable Care Model for an Ageing Population in Vietnam: Evidence from a Systematic Review

“…Cristea, Noja, Dănăcică, & Ştefea, [12] have linked the ageing population to reduced labor productivity and increased poverty risk. Similarly, Lukyanets, Okhrimenko, & Egorova [13] noted that an ageing population reduced the labor force and increased the dependency level, with an impact on economic stability. The literature further concluded that ignorance towards the ageing population has implications on state budget stability and threatens a country's economic prosperity.…”