Hello everybody! I want to share with you of our thoughts with my son Michael at the time when he peacefully sleeps on my hands and we have constructive discussion, with which, on my opinion, would be worth sharing you, for a reason that you are citizens of Russian Federation, the country where you live, the country where your children and even grandchildren will continue to live. The subject is about how will initiate the wheel of trust and security in system of retirement savings which will increase wages, will solve a problem of black and grey salaries and at the end will make fairer and more efficacy the tax system. Let's begin with pensions. I understand your doubts and discontent in this system. Some of you don't trust in the government and nearby government structures, and yes, the size of pensions and its perspectives should be better, but if we will think about it, this is the first thing from which all could be changed through correctly developing and socially oriented politics. I wish to bring you an example, example of foreign country, the State of Israel, and illuminate not the positive side of the issue, but the negative one, in order to evolve our thinking and to adopt only useful sides of the subject, to learn what may be better.
In Israel, except a social retirement payments, every citizen has individual pension savings them he collects during all his life from the age of 18 or if to be more correct, from starting his army service. The problem concludes in that this pension transactions from every salary accumulate in some private companies hands, want you that or not, which in their turn, guarantee to hold a savings in safety and to pay a pension payments from this savings when a time will come. Till that time, these companies invest this savings in different investing instruments with a purpose to increase it due to competent investment. This service isn't free. The companies take awesome commissions for their management, if we will take into account the scale of activities. The catch is if an investment decision turned out to be in loss, in this case all responsibility lies only on the individual himself that also continues to pay commissions to a manager company. In the other words, till then is everything good, you can be happy, pay your commission and don't mind at all, but when something is going wrong, you aren't happy, pay your commission and should think about it. And one more little nuance, ongoing market manipulations with your retirement savings remain in secret from you, except general details like the proportion of obligations part and stocks part. You don't know the details of applied investment instruments and can't influence them, at that time provided information is very limited and minimized likewise your possibilities to influence on that. The law clearly describes benefits and obligations of citizens. I mean, you and your employer have to pay for your pension savings account from each salary, that is reasonable, a pension savings are not taxed, thanks, you can take your savings at any period of life, but you will be obliged to pay a double tax from sum you take off, that is also reasonable. All together put the people in a narrow enough corridor of opportunities and give palpable advantages for thriving to management companies.
That is a suffice description of a subject from Israel's side and will be good to fix some concepts of issue rely on technological opportunities of our days and project it on Russian Federation with hope to improve all social structure in the future as fore simple citizen as for a government and country in total, but about that we will proceed later...
In continuation of the list above, in the Russian Federation all processes that connect to our theme are in the initial stage and that's why, in my opinion, should be reformed faster and easier than in countries with established jurisprudence with their influential beneficiaries. So, the idea is simple. I propose to provide a whole management of pension savings to citizens themselves, completely on their own and in full volume, specifically to establish in legislation a right for every person to have own pension account with connection to personal bank account, with full access, informative and instrumental, like a general bank account, or if you want, brokerage personal account, with the exception of use risky investment instruments, for example investor categorization rules of Russian Federation, and to prevent personal ability to withdraw savings from the account, only after significantly increased tax payment to government. The transactions on this account will be produced by a person himself and by his employer comparatively a person's salary. All management of this account will be the responsibility of the person himself, in other words, if a person wishes, he can invest his savings wherever he likes within the limits that will be established in the legislation, bonds, stocks and etc..., and if the person don't want, he can use this account like depository until his retirement, but there will be all clear to a person about his savings and his own solutions, avoidance of commission intermediaries, freedom to manage your own savings and responsibility for the final result. In this situation the mistrust in government is excluded, because the pension savings are completely in personal management.
But the story does not complete at a pension point, created situation will lead to personal recognition of the unprofitability of black and gray salaries, because the transactions from them on pension account are low, and over time, a significant proportion of people will work for a pure white salary. In the long term, it will inevitably lift up salaries for every one of you. Also the government will receive more taxes from these reforms with no protest from citizens and can boost the progress of the country at all and for the good of each of you. Afterward, the government could set progressive tax system, which will be more fair. In summary, only win to win conditions can lead to real success. Everything is in your hands and you can make your life better, you should just propose solutions and promote them, not only complain, but also propose and promote solutions that will make our life better.