In the near future the government plans to introduce laws that will introduce a new tier of the pension system — the funded provision.
It is reported Today.
The current PAYG pension system is almost outdated. Therefore, the only option that will help to ensure the normal old age pensions to save for a pension.
Chairman of the Board of the Ukrainian Association of administrators of pension funds Tatiana Salnikova told what we can hope for Ukrainians in retirement:
“If you don’t lay yourself for a second pension, the pension from the state after 20 years (2040) in the best case will be only 20% of your earnings. This means that if wages, for example, in 10 000 you will have to live in retirement in 2000 hryvnia.”
The corresponding projections made by the world Bank for Ukraine. But this forecast is the most optimistic.
The expert added:
“Right now, 13 million people pay contributions, of which pension is necessary to pay the 11.5 million pensioners. This is a very heavy load. The demographic situation is only getting worse. A similar problem faced not only Ukraine. The increasing life expectancy and decreasing birth rates is a General trend in all developed countries of the world. So hope for a state pension from solidarity system short-sighted, and accumulate on their own – very important”.