Despite the increasing cost of living and the statements of the authorities about the positive sides of the accumulative pension system, the Ukrainian pensioners may soon be an unpleasant surprise.
As reported Today.ua the experience of other countries shows that the transition to the second tier of the pension interest which is a pension in relation to previous earnings, reduced and not increased. Because of this, the pension amount becomes smaller.
On the experience of other countries in the introduction of a funded pension system shared national coordinator of the International labour organization in Ukraine Sergey Savchuk.
He noted that in Hungary the percentage of the pension in relation to previous earnings, reduced by 12.5% for people with insurance experience of 20 years and 18% — with the experience of 30 years.
In Poland, the ratio has also fallen by more than 20%.
The expert noted that a similar situation was observed in all countries that decided to privatize pensions.
Thus, the introduction of the second pension level does not improve the situation with pensions. And if in Ukraine this system will balance with solidary pension system, citizens will find an even greater poverty than now.
Recall that the contributory pension, which they want to introduce from January 2021, provides for monthly payments from 2% to 7% of salary to the selected payer certified private pension or savings Fund.
Where the money will accumulate, and with the onset of retirement age citizens will be able or pick up the full amount, or arrange instalment payments.
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my email@example.com 1-800-268-7128