THEORETICAL AND PRACTICAL FUNDAMENTALS OF FORMING THE POPULATION FINANCIAL LITERACY IN THE FIELD OF PENSION INSURANCE

Abstract

In modern conditions, there is an urgent need to form a high level of the population's financial literacy. The development of financial technologies, the digitalization of the modern world, and the widespread use of new financial services require an increase in the level of financial education among the population. The aim of our study is to highlight the importance of financial literacy for ensuring a successful pension insurance reform. The dialectical method of cognition, the method of analysis and synthesis as well as online questionnaires used for conducting research madr it possible to determine main problems in the knowledge system regarding the reform of pension insurance.
Developed countries, especially those ones experiencing demographic problems, have started the massive development of the multilevel pension insurance system. Consequently, the issue of enhanced financial literacy has arisen not only in the area of personal finance management at the consumption level, but also in the area of pension savings and their investment. Ukraine has initiated a profound reform in the pension provisions field with the transition to insurance principles. Our citizens should form a clear position on the necessity to participate in the supplementary pension insurance system.
According to the results of the survey, slightly more than half of the respondents show their interest in pension reform. But their level of knowledge is not sufficient to understand the basic principles of pension reform and take actions aimed at the accumulation of pension funds.
This fact necessitates the formation of financial literacy at three levels. The first level is represented by secondary schools. The technical-vocational education institutions, colleges as well as universities of the second level are supposed to deepen the financial literacy which further should be continued as self-education at the third level of adulthood.
Improving financial literacy in the field of pension insurance should result in a high level of cooperation with various financial institutions, including insurance companies, private pension funds, and banking institutions in the field of raising funds for future pension provisions through the skillful and systematic personal finance management.