Uman National University | today: 12/28/2025
| Author(s) |
Malyovanyi M., Doctor of Ekonomikal Sciences, , Бондаренко Н. В., , , Орлов І. О., , , |
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| Category | Economics | ||
| year | 2025 | issue | Issue 107 part 2 |
| pages | 228-238 | index UDK | 368.94:336.7 | DOI | 10.32782/2415-8240-2025-107-2-228-238 (Link) |
| Abstract | The purpose of the article is to identify the theoretical determinants and evaluate the practical mechanisms of financial support for non-state social insurance, as well as to assess their functioning under the current socio-economic conditions of Ukraine. To achieve this aim, the authors applied general scientific and special methods, including system analysis, comparative analysis, structural–functional method, synthesis, and generalization. The methodological approach made it possible to systematize existing theoretical views on funded and investment-based insurance models and to clarify the institutional factors that determine their effectiveness. The research results demonstrate that non-state social insurance serves as a vital complementary component of the national social protection system, as it relies on the accumulation of individual contributions and the formation of long-term investment resources. Unlike the public solidarity model, the non-state system is based on voluntary participation, private ownership of accumulated assets, professional asset management, and investment diversification. These features allow participants to form individualized social protection capital and simultaneously create investment resources for the national economy. The study outlines two core mechanisms of financial support for non-state social insurance: the accumulation mechanism, which provides gradual formation and capitalization of individual savings, and the investment mechanism, which ensures the productive allocation of pension assets and generates long-term investment returns. Their combined functioning strengthens financial resilience and reduces the system’s dependence on demographic fluctuations. The authors identify several challenges that hinder the development of non-state social insurance in Ukraine, including macroeconomic instability, insufficient capitalization of financial markets, limited diversification of investment instruments, and low public trust. The analysis of international experience shows that in countries with developed financial markets, pension funds play a dual role: ensuring participants’ future income and providing substantial long-term investment resources for economic development. For Ukraine, strengthening the institutional structure, improving regulatory frameworks, and expanding the range of reliable investment tools are crucial preconditions for unlocking the full potential of non-state pension institutions. The conclusions highlight that effective financial support of non-state social insurance requires the integration of responsible accumulation, prudent investment management, and consistent state regulation. Under these conditions, non-state pension funds can significantly reinforce the sustainability of the national social protection system, reduce fiscal pressure on the state budget, and enhance the economic security and welfare of citizens over the long term. | ||
| Key words | non-state social insurance; financial support; funded approach; investment potential; pension funds; social protection; institutional mechanisms; asset management; voluntary contributions; financial stability | ||