Ukraine is preparing a large-scale pension reform that will allow citizens to significantly increase their future payments. According to the new model, pensions can be doubled or even tripled by combining three levels – solidarity, accumulative and voluntary.

This was stated by the Minister of Social Policy, Oksana Zholnovych, in the program “What about the economy?” .

It is noted that in some cases the pension will reach 80% of the previous earnings. The draft law on launching the accumulative system is already being finalized in the Verkhovna Rada.

As part of the new reform, Ukrainians are offered a combined pension model that will include three sources of income at once. The solidarity part will remain basic and is expected to provide about 40% of previous earnings. The accumulative system will allow for an additional 20–40% increase in payments, depending on contributions. And the voluntary pension program will allow those who wish to independently generate additional income after retirement.

According to the minister, in some cases, the total coverage will reach 80% of the salary, which is a decent standard of living for a pensioner.

Minister Zholnovych also emphasized that the solidarity system remains important for payments to current pensioners. However, due to significant imbalances and financial instability, the government plans to transform it to guarantee more sustainable provision in the future.

Almost all key international organizations – the World Bank, the International Monetary Fund, and the International Labor Organization – were involved in the development of the reform. This, according to the ministry, will ensure the reliability and validity of the changes.

Zholnovych added that a draft law regulating the launch of the accumulative system has already been prepared. Its final revision is currently underway in the relevant committees of the Verkhovna Rada and the Cabinet of Ministers. The authorities plan to adopt the document in the coming months in order to begin the pension system reform as soon as possible.

Previously, the chairman of the parliamentary Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, spoke in favor of increasing the minimum pension in Ukraine to 4 thousand hryvnias.

By the way, the Minister of Social Policy of Ukraine, Oksana Zholnovych, stated that the announced pension reform in Ukraine provides for a mandatory deduction of 9% of salaries for a funded pension.

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