Raising retirement age inevitable, - MP

Source : 112 Ukraine

World Bank surveys show that by 2030, under the current parameters of the solidary system, only 40 percent of citizens will be paid retirement wages under the calculated formula, and the rest will be paid minimal retirement wage, Halyna Tretyakova said
12:40, 7 February 2020

Open source

An increase of the retirement age in Ukraine is inevitable. One can only level the solidary system of pension payments by means of increasing the retirement age. Ekonomichna Pravda outlet released an interview with MP Halyna Tretyakova, the Head of the parliamentary committee for social policy, who commented on the issue.

"There are the World Bank's surveys. It says that in 2030, under the parameters of the current solidary system, 40 percent of the citizens will be getting the retirement wages based on the calculated formula. All the rest will be getting a minimal retirement wage", she said.

According to the politician, one of the mistakes was the involvement of self-employed individuals who "pay some UAH 800 (USD 32) of unified taxes, asking for UAH 1600 (USD 65) of minimal retirement wage". 

"Our children will pay more taxes to support those who pay less. We shouldn't have involved self-employed individuals in the system of pension provision. One could do that in 10-20 years. The EU began to include these people in the pension system in the 2000s, when they got richer", Tretyakova said.

Related: Ukraine’s Cabinet approves Pension Fund's budget for 2020

By her estimates, if the situation remains as it is, it will actually worsen gradually. "We either put that load on the taxpayers, or we go for a saving system and level the situation", she concluded.

Currently, there are 11.3 million retired people in Ukraine. The Pension Fund specifies that the minimal retirement wage currently makes 1,638 UAH (USD 66), the average one is 3,019 (USD 122), and the maximum retirement wage makes 16,380 UAH (666). 

Related: MP from Servant of the People party advises pensioner to sell dog to pay for utilities

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