The pension system of Belarus is inherited from USSR. It is gender-biased and does not contribute to economic development. Obsolescence of the system and demographic situation in Belarus make pension system reforms inevitable. Under the current pension system the deficit of the Pension fund will reach 1.8% of GDP by 2020. Transition to the fully-funded pension system is not possible until macroeconomic stabilization is achieved. In the medium term only parameters of current pension system can be reformed. Equating of retirement age of females and males with gradual increase of pension age to 65/65 is the most effective measure among all available alternatives. It will provide not only the financial stability of the Pension fund, but will also increase labor force participation, which will become the engine of economic growth.
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