The situation with pension provision in Ukraine is very complicated. Without a revision of who receives pensions and how to change this system, the country will not be able to ensure sustainable pension payments in the future.
This was reported by the first deputy chair of the Verkhovna Rada Committee on Humanitarian and Information Policy, Iryna Konstankevych, during a telethon, as reported by UNN.
In fact, we have a very complicated situation with pension provision. We base such conclusions on an audit conducted by the Accounting Chamber regarding the activities of the Pension Fund, particularly the timely provision of pensions to Ukrainians. It is based on the findings of the Accounting Chamber that we understand that the situation regarding state pension provision is deteriorating every year, as currently we have a situation where one working person supports one pensioner. The number of pensioners is increasing, while the number of working individuals paying the Unified Social Contribution (USC) is decreasing.
She noted that there are many reasons for this situation, the key one being the war, which has caused a demographic crisis and labor migration.
The economy is somewhat in the shadow and taxes are also not flowing into the Pension Fund. Therefore, the funds that the Pension Fund operates with are decreasing. The Pension Fund has long been subsidized, and if it weren't for the help of our international partners, who allocated money specifically for ensuring pensions for Ukrainians, we would be in an extremely difficult situation. International partners have provided over $12 billion to ensure that Ukrainian pensioners receive their payments on time.
However, according to her, without a revision of who receives pensions and how to change this system, Ukraine will not be able to ensure sustainable pension payments in the future.
Currently, Ukraine has a solidarity pension provision system, and an additional component of the pension reform has been added – non-state accumulative pension provision. These two components are not enough for our pensioners to receive adequate pensions. And undoubtedly, it is necessary to implement the accumulative pension system that was planned back in 2024. It was supposed to start in 2024, and if it weren't for the war, I think it would have happened. But several negative factors forced us to suspend these processes.
According to her, work is constantly ongoing in the Verkhovna Rada Committee on Social Policy, both in subcommittees and with civil society.
In particular, at the end of February, there were extensive discussions about the prospects of the solidarity state pension system, and it became clear that it cannot continue for long and needs to be changed at the macroeconomic level.
Konstankevych reported that colleagues from the relevant committee proposed a number of solutions aimed at balancing this system at the economic level and finding mechanisms to ensure financial inflows and balance the principle of fairness.
Because we have 9 million Ukrainians receiving low pensions, but there are almost a million Ukrainians receiving very high pensions.
Supplement
In July 2024, it was reported that in Ukraine the accumulative pension system is not yet ready for implementation, as clear legislation and the development of the stock market need to be ensured.
The Ministry of Social Policy plans to launch the accumulative pension system from 2026. Currently, the legislative framework and IT system for the state accumulative fund are being developed.