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PM: In 15 years Ukraine will not be able to pay pensions

Source : 112 Ukraine

The head of government noted the need to introduce a funded pension system in the country
16:38, 4 October 2020

Press-service of the Cabinet of Ministers

In 15 years, Ukraine would not be able to pay pensions to citizens, because the state would not have such resources. This was announced by Prime Minister Denys Shmygal during his speech to the students of Lviv Polytechnic University.

The head of government noted that the reason for this may be the demographic situation in Ukraine because the number of the working-age population is gradually decreasing.

"... There will be few able-bodied people and many retirees. The ratio will be 1/2. What does this mean? That taxes will have to be doubled in order for companies and you (students - ed.) to keep us, retirees, on the level that is today... We will not be able to pay pensions to future pensioners in 15 years. This is common mathematics," said Shmygal.

Related: Government exempted Ukrainians from paying pension fees when buying living space

He noted the need to introduce a funded pension system in addition to the existing solidary one.

The Ministry of Social Policy of Ukraine proposes to balance the solidarity pension system with a funded level: contributions to future pensions will be made not only by employers but also by citizens.

Related: Situation under control: Ukraine does not plan to introduce strict lockdown measures

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