Asian Journal of Multidimensional Research (AJMR)

In this article said about deepening of pension system reforms and development of investment activities in transition economies, also there are conclusions and suggestions related to current pension system reforms of transition economies and deepening of these reforms as well as development of investment activities. In this direction we should set up proportionality of responsibility and financing between state, employer and employee for social result which come because of old age of employee. Government must guarantee the lowest rate of social standards. In practice, in 2001 funds in Chile were saving 25% of their money in foreign countries. The same situation was with Hungary. In Hungary money in the portfolio of private pension funds limit for savings was 30% last years, but in practice, placing for foreign currency was no more than 5%. If approach and tendencies to reforms are changed regularly, their purpose also will become unclear and effectiveness of results will be inferior. We can see successful and consistent pension insurance experiences in the pension system of Kazakhstan. Usually this success is compared with achievements of Chile pension reform. Financial factors. As a result of equalization policy, low rate differensialization of pension appeared. The amount of salary earned during service year did not affect (excluding limited number of “privileged” pensioners) amount of payable pension.