According to Oksana Zholnovich, as reported by “napensii”, the Minister of Social Policy of Ukraine, who discussed changes during the telethon “Unified News”, citizens will continue to receive the existing solidarity pension funded by the state.
Additionally, a cumulative pension will be introduced, financed through automatic deductions from salaries throughout a person's working life. The total pension amount will depend on how much has been contributed to the fund over time.
Initially, all contributions under the new cumulative system will be directed to the state fund.
However, once the system stabilizes and private funds are allowed to operate, citizens will have the freedom to choose a fund for their contributions. This transition will take place after the ongoing war concludes.
The aim of implementing this two-tier pension system is to increase pension payouts, aligning them with European standards, where retirees typically receive about 40% of their previous earnings as a pension.
This reform is intended to enhance the financial security of retirees in Ukraine and address the current shortcomings in pension amounts.