The article deals with one of the most pressing problems of modernizing the economic relations of the pension system aimed at improving the standard of living of citizens of the Russian Federation.
Using a systemic methodological approach and methods of statistical and economic analysis, including horizontal and vertical analysis, the authors assessed the dynamics and structure of income and expenses of the Pension Fund and the number of employed pensioners in Russia. Pensions to individuals were calculated using methods of ratio analysis. Differences in living standards of pensioners in the Far North and other regions of Russia were assessed using comparative analysis. The study showed the reason why Russian pensioners stay employed, presented the procedure of pension payments to individuals, and explained potential ways of improving the pension system. The main idea of the study findings is to explain the need to reform the pension system for the purpose of raising the living standards of pensioner citizens of the Russian Federation.