A large-scale update of the pension system is being prepared in Ukraine, which will affect both current pensioners and those who are only accumulating insurance experience. The relevant departments explain that the reform should make the system more stable and fair, as well as reduce the burden on the budget. This is reported by “Pershy Biznesovy“, the PromPolitInform portal reports.
One of the key elements will be the updated formula for calculating pensions. It should more strongly tie the amount of payments to the actual experience and the amount of contributions paid. The government is also considering expanding the accumulation level, which will allow Ukrainians to form additional savings for old age.
Special attention is paid to benefits. Some of them are planned to be revised or canceled, since the current system covers too broad categories and is often not targeted. According to government officials, support should be provided to those who really need it, not everyone who formally falls under the preferential criteria.
We will remind you that the reform is inevitable: demographic changes and increased spending on the social sphere make the current model financially unsustainable. At the same time, the authorities promise that the changes will be implemented gradually to avoid sharp fluctuations in payments.
