Who and why should start saving for retirement now

The Ukrainians, who this year marks 50 years old, was 21 when together with the collapse of the Soviet Union is gone, and saving tens of millions of people across the country. 20-year-old who saw the credit crisis of 2008 and the collapse of the hryvnia from 4.5 to 8 UAH/$, 32. Those in 20s was watching the fall of the economy and the triple devaluation after the war, which began in 2014, now about 25.

Кто и почему должен начинать копить себе на пенсию уже сейчас

It is reported Ocportal with reference to Focus.

Reason:

  • The situation with the hole in the Pension Fund (UAH 170 bn in 2020) and demography (in the 90s and the 2010s, Ukraine has experienced declines in fertility) suggests that three generations of Ukrainians of working age are unlikely to have the normal software from the state if the PAYG pension system will remain the only source for the payment of pensions.

The way out:

  • Ideally, they should begin to save for their retirement, as do residents of most developed countries. But while this story is not about Ukraine. According to a study by USAID (June 2019), only a third of Ukrainians, distributing income focus on long-term (at least longer than a year), 18% believe that it is better to spend the money here and now.