For every full year of work after reaching retirement age, the payout increases by 6%
Citizens of Ukraine have the right to postpone their old-age retirement to receive higher payments in the future. Deferring the pension assignment for six years allows for a 54% increase in the base amount. This is reported by the portal PromPolitInform, citing information from Pension Fund of Ukraine.
The decision regarding the timing of pension benefit registration remains with the individual who has acquired the relevant right under the Law on Compulsory State Pension Insurance. If a citizen chooses to continue working after reaching the age of 60 instead of retiring immediately, their pension will later be calculated taking into account the additionally acquired insurance period.
Mechanism for calculating bonuses
To encourage citizens to continue their employment, the state has provided for an increase in payout amounts for every full month of work after the right to a pension arises. If the deferral is less than 60 months, 0.5% is added to the base pension amount for every full month of seniority. Thus, each full year of work after the official retirement age provides a 6% bonus.
Increasing payouts with long-term deferral
In cases where the pension deferral exceeds 60 months, the percentage increase becomes higher. For every full month of work after the fifth year of deferral, 0.75% is added to the base pension amount. Therefore, working for six years after reaching retirement age, which totals 72 months, grants the right to a total payout increase of 54%.
Important registration conditions
It should be noted that only full months of the insurance period are taken into account for the calculation of additional percentages. No increase is granted for periods that do not constitute a full month. To implement this mechanism, one must inform the relevant territorial body of the Pension Fund of Ukraine about the intention to postpone retirement well in advance, before reaching the official retirement age.
Photo: Pension Fund of Ukraine
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