Ukraine intends to introduce funded pension system

Source : 112 Ukraine

The Minister noted that the pension system is dependent on demography
17:11, 13 June 2020
Minister of Social Policy Maryna Lazebna
Open source
Ukraine needs to introduce the funded pension system, since the replacement rate with respect to wages is constantly falling. This was announced on the air of 112 Ukraine by the Minister of Social Policy, Maryna Lazebna.

"Today, the replacement rate is such an indicator that measures pension in relation to salary. A person retires, and if 10 years ago he received 60% of his salary, now it is about 30%. But we have a tendency, we calculated forecasts, it (the rate, - ed.) is falling. We are heading to the worse consequences," she said.

The Minister noted that the pension system is dependent on demography. That is, there are more pensioners, and fewer payers who pay taxes to the Pension Fund.

“After 20 years, international institutions have calculated that Ukraine expects 18% of the pension system. And there is the only alternative way - to accumulate pensions in other instruments,” summarized Maryna Lazebna.
Earlier Cabinet of Ministers approved the Pension Fund's budget for 2020. Prime Minister of Ukraine Oleksiy Honcharuk announced this on his Telegram page.

"The amount of funding for pension programs is 7 billion 26 million 81 thousand dollars. I note that the budget of the Pension Fund of Ukraine for 2020 is balanced," the message says.

It is worth noting that since January 1, 2020, the minimum pension in Ukraine amounts to 66,7 dollars, from July 1 it will increase to 69,7 dollars, from December 1 - up to 72 dollars.

In addition, as of January 1, 2020, the number of years of service required for retirement pensions has been steadily increasing in Ukraine.

Now only those who have at least 27 years of work experience can claim a pension.

If a person lacks seniority, the retirement age will not be 60, but 63, or 65, depending on the present work experience and the date of application for the pension.

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