Retirement Pension Replacement Rate as a Efficiency Criterion of the Pension System

The replacement rate is the major indicator of insurance efficiency of insurance pension system as it allows to estimate level of replacement of the earnings lost of the worker. During the international comparisons the replacement rate is a basic indicator of pension provision level. Therefore replacement rate even more often suggest considering as the main target reference point of development of pension system and the base indicator of realization of pension reform. In Russia the given indicator is very popular not only among experts in the field of pension provision and representatives of authorities, but also the wide circle. However it is difficult to speak about competent and effective application in Russia of the replacement rate as it is possible to allocate two mainframes of problems of use of the replacement rate in Russia is a discrepancy to the international standards and a problem of directly methodology of calculation.