A funded pension system in Ukraine will not be introduced in the short term.
This was stated by Minister of Social Policy Yulia Sokolovskaya in an interview with Interfax-Ukraine, published on Friday, September 27.
“It will unlikely happen in the short term. We still do not have the infrastructure to make it work, but there are already many developments. Studies on the funded system show that people's expectations for this system are too high, people do not fully understand how much funds will be,” – Sokolovskaya said.
According to the minister, to introduce a funded system, you first need to determine who will pay the contributions, how much interest, make actuarial calculations, whether it will be beneficial to the person.
“The plus of savings is “long money,” that is, life savings. Usually it works so that the funds are invested, which means there should be a market where you can invest. Today in Ukraine there is practically no such market. You know that the bill on split was adopted - it also contains issues of regulation of non-state pension funds, the Commission for Securities of the stock market. These are the first steps, which we can say that if we move in this direction efficiently, then for some period of time we will be able to introduce a funded system,” – she added.
“I will say such a thing: today nothing prevents us from accumulating our old age, but, unfortunately, for some reason we are not doing this. This is actually human nature. Therefore, encouraging people to accumulate is one of the solutions. But it would be good if people understood and thought about old age in advance,” – the minister said.
Earlier, the Verkhovna Rada said that as a result of indexation in March 2020, pensions will grow by 12-13%.
According to the draft budget for 2020, the minimum pension in Ukraine will increase by 8% - from 1638 UAH to 1769 UAH.
