Uman NUH | today: 07/19/2024

The pension system in Ukraine

Author(s) Bondarenko N.V., , , Uman National University of Horticulture
Ulyanych Y.V., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Деркач Т. А., , ,
Андрусішина Н. В., , ,
Category Economics
year 2023 issue Issue number 102. Part 2
pages 82-91 index UDK 349.3
DOI 10.32782/2415-8240-2023-102-2-82-91 (Link)
Abstract The paper is devoted to Ukrainian pension system and the main problems that exist there. It examines the potential for improving and developing the system, including financial sustainability, reducing pension inequality, setting reasonable retirement ages, expanding pension coverage, effective administration, and improving the financial literacy of the population. The paper examines current approaches to defining the concept of "pension provision" and confirms its nature and effectiveness in Ukraine. The war against Russian Federation and the resulting devaluation of the country's currency have significantly reduced the level of social protection for pensioners, proving that approximately 8.69 million pensioners are below the poverty line. In order to increase the level of social protection of pensioners in Ukraine under martial law, it is proposed to expand cooperation with international humanitarian organizations and to introduce compulsory social services in the form of assistance to pensioners registered in employment centers. Particular attention is paid to the introduction of a funded pension system as the second pillar and the need for pension reform. It clarifies how the introduction of the endowment plan failed and explains the parametric changes introduced to the PAYG pension plan. In general, the article emphasizes the importance of ensuring the sustainability of pension provision in Ukraine and the need for reforms to improve the social security of pensioners. For the successful implementation of the accumulation system in the future, it is necessary to create conditions that guarantee the preservation of the value of pension contributions and provide guarantees regarding their payment after retirement. It is worth paying attention to the need to carry out a pension reform taking into account the demographic crisis, population aging, migration processes and other factors that affect stable incomes to the Pension Fund and meeting the needs of pensioners
Key words social security; pension provision; pension reform; social services; poverty line; minimum economic well-being
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