Uman National University | today: 06/19/2025
| Author(s) |
Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine Бондаренко Н. В., , , Демчук В. М., , , Грицак О. І., , , |
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| Category | Economics | ||
| year | 2025 | issue | Випуск 106 Частина 2 |
| pages | 65-76 | index UDK | 364.4:331.25(100)(477) | DOI | 10.32782/2415-8240-2025-106-2-65-76 (Link) |
| Abstract | This article presents a comprehensive analysis of the international experience in reforming pension systems in countries with developed market economies, with a particular focus on assessing its applicability to the Ukrainian context. The study addresses demographic, social, and economic challenges facing modern pension systems in the era of globalization, population aging, and increasing pressure on public finances. The pension models of the United Kingdom and Sweden are examined as examples of successful integration of pay-as-you-go and funded mechanisms. In the case of the United Kingdom, the national pension system is complemented by widespread use of occupational and personal pension schemes, administered by private pension funds. These instruments reduce the state’s fiscal burden while enhancing individual responsibility for future retirement income. The Swedish model, in contrast, is centered on notional defined contribution (NDC) accounts, which combine intergenerational solidarity with individual tracking of contributions that are indexed to wage growth. This hybrid mechanism ensures flexibility and financial sustainability of the pension system in the long run. Based on this analysis, the article highlights the feasibility of implementing a mixed pension system in Ukraine that incorporates the strengths of both pay-as-you-go and funded models. The author proposes a gradual introduction of notional accounts as an alternative to the traditional solidarity-based approach. Furthermore, the study emphasizes the importance of establishing favorable tax incentives for the development of personal pension plans and encouraging employers to participate in occupational schemes. The findings suggest that selectively adapting the pension strategies of the UK and Sweden – considering Ukraine’s institutional, social, and economic characteristics – may enhance the efficiency, equity, and long-term resilience of the national pension system. | ||
| Key words | pension system, funded model, pay-as-you-go system, pension reform, occupational pension plans, notional defined contribution accounts, demographic challenges | ||