Pension reform in action: from January 1, tens of thousands of Ukrainians can start begging

The nuances when calculating minimum deductions apply to the following categories of citizens:

Employees of enterprises with harmful, difficult working conditions. According to Law No. 1788, people over 50 are entitled to payments: men with 25 years of work experience, women with 20 years of work experience.

• Teachers retire upon their 50th birthday (until the end of the reform, the bar will be raised by 60 months). Mandatory special experience - 25... 30 years (until 2015...2024, respectively).
• Participants in combat operations in Afghanistan. The retirement age for women and men is 50−55, the insurance period is 20 and 25 years.
• Miners. Mandatory access to state support is service in the field of mining for 20-25 reporting periods. Miners who have worked 7.5-10 years (women, men) can also count on a reduction in the retirement age. The PF will count the same number of years.
• Disabled people. Persons of the first group over 25 years old need only one year of experience; disabled people of the third group aged 56 years need to work for 14 reporting periods. If disability occurs at retirement age, the minimum insurance period will be 15 years.
• Military. The category of citizens expects their length of service to increase to 25 years (instead of 20) by 2021.

Upon reaching the age of 55, women who have more than 5 children or a disabled child have the right to retire.
The retirement age for women has been gradually increasing since 2010. It is expected that in 2021 the fair sex will finally be equalized with men. Retirement will be possible for them only from the age of 60.

How pensions are calculated in Ukraine in 2021

To receive a pension in Ukraine, you must reach a certain age and officially work for a certain number of years (obtain insurance coverage). The second indicator is more significant. What is the retirement age in Ukraine.

From 1 April 2021, the retirement age for men and women is 60 years.

What is the required insurance period for retirement in 2021:

• at 60 years old - from 28 years of experience;
• at 63 years old - from 18 to 28 years old;
• at 65 years old - from 15 to 18 years.

It doesn't matter how many years a person has worked. Experience is taken into account only when contributions to the pension fund have been paid for a person - unified insurance contributions (USC). For example, a person worked for 30 years, but only 15 of them paid the unified social tax. His experience is 15 years.

Implementation of pension reform

The Verkhovna Rada of Ukraine has made further changes to pension legislation. According to the new bill, the insurance period will be increased in 2021. Now, to receive an average pension in Ukraine, the work experience for men will be 35 years, for women – 30 years.

Pension experience in Ukraine is calculated in months. New laws on pension accruals will have an impact on the premium for excess work. The total length of service for a pension, if we mean the “minimum wage,” has been increased. Against this background, the mechanism for calculating allowances was changed. The size of the premiums remained unchanged – 1%. Pensions will now be calculated based on the average salary for 36 months. At the same time, the country's authorities have simplified taxation as much as possible and improved working conditions for entrepreneurs.

From January 1, pensions will be increased in Ukraine: who will receive and how much?

According to people's deputies, in 2021 more than 10 million Ukrainians will receive additional pension funding. Much will depend on the full insurance period; in this case, working pensioners will benefit from “white” registration, for example, for men and women with 35 and 30 years of experience, respectively, and over 65 years, the minimum pension will increase by 500 UAH.

This means that, in general, pensioners will receive at least 2,600 UAH. In addition, the Verkhovna Rada has provided additional funding for those who are over 80 years old and over 75 years old; for them, the minimum length of service is 25 and 20 years, respectively. The bill provides for indexation of pensions, which will take place from May 1.

At the beginning of the year, the increase in pension provision is associated with an increase in the minimum wage to 6,000 hryvnia, therefore, subsidies for pensioners will increase with an additional payment of up to 2,400 hryvnia, if they have the appropriate insurance experience.

In March, it is planned to “recalculate pensions” due to indexation at the level of 11% and higher.

What supplements will there be in 2021 in Ukraine in the summer? After the minimum wage increases to 6,500 hryvnia, pensions will increase from 2,400 to 2,600 hryvnia. Monthly subsidies of up to 4,100 UAH are also provided for pensioners aged 75–80 years, if their minimum pension does not reach 2,500 in national currency. This will be fulfilled if the pensioner has a minimum of 25 and 20 years of insurance experience for men and women.

At the age of 80, a Ukrainian will receive an increased bonus, the amount is calculated individually, and special payments for single pensioners. In this case, the pension provision increases from UAH 2,600 to UAH 3,342. This difference is provided by additional payment for help and care.

Also, in mid-summer, additional payments are provided for the following categories of pensioners:

• To the liquidators of the Chernobyl accident.
• Pensioners for special services.
• For extra experience.
• Disabled people of war.
• Participants of military companies.

If a Ukrainian, when calculating pension payments, lacks several years of experience from recent times, it can be purchased, although this pleasure will not be cheap.

What does it mean to buy additional experience? This is a gradual voluntary acquisition of years of experience; upon concluding the corresponding agreement, the buyer pays the unified social contribution. The monthly payment amount is equal to 22% of the minimum wage. the single social contribution in 2021 is 1320 hryvnia.

Pensions will rise

Already from January 1, former military personnel received an increase in pensions. As Minister of Social Policy Andrei Reva explained, pensions will increase by an average of 25%. According to the official, there are about 550 thousand retired security forces in the country, and their average pension is 4,900 UAH, so the bonus will be 1,225 UAH.

Do not forget that the country also plans to increase pensions annually, taking into account inflation and salary growth. Annual increases are carried out automatically. As they say in the Ministry of Social Policy, the increase will take place according to uniform approaches and will amount to 50% of the increase in average wages plus 50% of the increase in the inflation rate.

The government notes that pensions will be recalculated starting in March, when inflation and average salary growth for 2021 are finally calculated.

“If inflation this year is 12%, as predicted, then 6% is taken into account. The wage fund grew by 25% over eight months, that is, we take 12.5% ​​into account. In total this is 18.5%. This means that the growth of pensions will occur within 20% of the current pension amounts,” notes Reva.

Let us recall that the average pension in Ukraine at the beginning of 2021 was slightly more than 2.5 thousand UAH. From this calculation, a 20% increase in pension will be a little more than 500 UAH.

Prime Minister of Ukraine Vladimir Groysman stated that the average pension in the country in 2019 will increase by 900 UAH.

From January 1, 2021, the minimum pension was increased for those pensioners who are already 65 years old and whose work experience exceeds 30 years (for women) and 35 years (for men). Thus, their pension will increase by 172 UAH (up to 1669 UAH).

According to the director of the pension provision department of the Pension Fund (PF) of Ukraine, Elena Okhrimenko, the law stipulates that the pension amount for such persons cannot be lower than 40% of the minimum wage.

Since the [minimum] wage figure increases to 4173 from January 1, 2021, the pension amount will increase by UAH 172.

In addition, pensions will be recalculated twice more in 2021 due to an increase in the cost of living:

from July 1 – recalculation of pensions due to an increase in the cost of living to 1,564 UAH;

from December 1 – recalculation of pensions due to an increase in the cost of living to 1638 UAH.

Pension system of Ukraine

Ukraine was particularly in need of pension reform, if only because its monthly pension payments are among the lowest in Europe. Considering that wages in Ukraine have almost doubled recently, pensions of the population have slipped below the average subsistence level. By 2024, the government expects to bring the Pension Fund out of the deficit in which it is currently located. The weak link in the current pension system in the country can easily be called widespread shadow employment. And also the inexorably growing ratio of the level of pensioners to the working population. In this, Ukraine is catching up with Europe.

Pension system in Ukraine

Currently, Ukraine has a solidarity system that provides for several types of pensions:

1. Old age pensions. Accrued with a minimum length of service equal to 15 years of employment. And also in work experience: for women 30 years, for men 35 years. The formula for calculating this type of pension includes: the dependence of the employee’s average salary to the average salary in Ukraine and the coefficient of years worked.
2. Social pensions. With low work experience (less than 15 years), the employee has the right to receive a monthly social payment. Its value directly depends on the cost of living.
3. Pensions for the loss of a breadwinner. Without the required work experience of the deceased breadwinner, close relatives who are supported are not entitled to monthly payments.
4. Disability pension. The amount of the pension depends on the degree of disability of the person. To receive this payment, you must have 2–5 years of insurance coverage, depending on the person’s age.

Changes in the upcoming pension reform 2021

The changes contained in the new reform bill could come into force in October 2021. The amount of payments itself will increase, but retiring will be much more difficult.

What are the changes:

1. Beneficiaries: those who retired in Ukraine will be financed by the employer earlier. For them, the social contribution rate will change to 37 percent. This applies to miners, healthcare workers and others. 2021 is preparing innovations for them in the form of future savings in private accounts for workers under the age of 35. So far this financing comes from the Pension Fund. Thus, the government is trying to relieve it by accumulating funds in professional systems. The amount of social contribution for employees on the preferential list of less harmful working conditions will be 29 percent of the salary.
2. The insurance period figure is subject to change. Those working with 25 years of experience will be able to retire at the age of 60. But in subsequent years, this figure will change to 35 in 2021. The calculation is made by adding one year each year. If the employee has not reached the required length of service at the age of 65, he can count on a monthly social payment, the amount of which will depend on the amount of income of all members of the pensioner’s family.
3. Opportunity to purchase missing experience. The amount of one year of experience will be 16896 gr. The maximum possible number of years purchased will be 5 years. Low-income pensioners who do not have the opportunity to buy the missing years will only be able to count on a monthly social payment.
4. Pensioners who prefer to continue working will be exempt from taxation. This step will allow the government to increase the average pension by 18 percent.
5. The solidarity pension system will end its existence. Only the first level will continue this tradition. Non-state pension funds will be replenished with voluntary pension contributions from citizens. A newly minted pensioner will be able to use the savings or pass them on by inheritance.
6. Upgrading pensions for those who have not received an increase in the last four years.

How is the pension payment calculated?

The main indicators for calculating pensions are:

• the size of the average salary in Ukraine;
• years worked (calculates the coefficient by multiplying each year worked by 1.35);
• the dependence of personal salary is the average value between the last three salary of an employee to the average salary in Ukraine (this indicator changes annually).

All this is multiplied with each other and the result is the size of the monthly pension payment.

Benefits for pensioners in Ukraine

The situation with pension benefits, unfortunately, is disappointing. Since 2016, their distribution has been transferred to local governments. But under the existing system, the allocated money does not reach the recipient, but gets stuck in the central authorities. Thus, as such, there are no benefits for pensioners in the real state of affairs.

Pension fund deficit and pension equalization. The acute deficit of the Pension Fund is quite a clear indicator that the country is in a deep economic crisis. To stabilize the situation, a general reform is needed:

• VAT reduction;
• stabilization of the zero rate of the unified social contribution;
• stabilization of income tax within 19%;
• stabilization of income tax within 29%.

Thus, there will be a general distribution of labor and the family budget will rise to the required level to stabilize economic growth.

Another option for influencing PF deficiency is:

• increasing the retirement age in Ukraine;
• reduction of the average pension in Ukraine;
• exemption of the Pension Fund from expenses unusual for it, one of which is an additional payment to the minimum pension.

The new reform of 2021 threatens to be socially fair. Real steps towards this could be:

• fight against shadow wages;
• fight against equality;
• new improved pension system.

Currently, it is difficult to judge the future of the pension system of Ukraine. Only time will tell how effective the measures taken today will be in the coming years. One thing is certain, the process is not easy and takes time. Today's retirees, whose average life expectancy in Ukraine leaves much to be desired, are unlikely to live better in the near future.

If you liked the article, then share it with your friends. Take part in the life of the project!

This is interesting…

• Social norm for electricity...

• Increase in military pensions in 2014...

• History of pension reform in Russia: changes to the pension system in 2013...

Amount of disability pensions

For a long time, the authorities did not pay due attention to the problems of people with disabilities. Now the time has come for change, and within the framework of certain reforms, various social payments, assistance, additional payments and wages are being increased. Since the issues of people with disabilities require urgent solutions, it was decided to review the amount of benefits. It is expected that the size of the disability pension in Ukraine in 2021 will be set at a level that will be enough for normal living, the purchase of medicines and other important goods by people who are deprived of the opportunity to earn money for living on their own.

What are the different disability groups?

The fact is that the amount of assistance a person receives from the state is determined depending on his category of disability. The group is determined after a thorough medical examination by a special commission.

The size of the disability pension of group 1 in Ukraine will be the usual 100% of the benefit. This group includes those individuals who cannot work and provide for themselves. This type of disability can be congenital or acquired. Cases with serious injuries are partially considered. Representatives of this group are most often looked after by relatives or close people.

Representatives of the second group are distinguished by the fact that although they cannot work and provide for themselves, they do not need constant care and supervision. It happens that employers still hire disabled people of the second group for some positions and they perform basic labor tasks.

The pension for disabled people of group 2 leaves about 90% of the benefit amount. But everything is compensated by the employment of citizens with disabilities.

The third group is not considered particularly serious. It includes people who have specific chronic diseases, which sometimes lead to the need to change their work environment or general place of life. Such diseases generally do not depend on the person himself and can be hereditary. Most often, such diseases do not particularly affect a person’s ability to work, and therefore he can safely continue to earn his living. A disabled person of the third group can receive assistance from the state, but its amount will be adjusted depending on the length of the person’s work experience.

The minimum pension for disability group 3 in 2021 in Ukraine is 50% of the benefit amount. If they have the necessary length of service, people with disabilities can count on 85% of the benefit.

What is needed to receive a disability category?

A person cannot just get a category and start applying for social benefits. First, you need to contact the social service, after which the person will need to undergo a special medical examination, during which the commission will determine the real state of the person’s health and his ability to work. If a person, due to injuries, cannot come for a medical examination, then the commission must come to the person’s home, directly to the person himself. Only after receiving the commission’s conclusion can a person contact social services to apply for benefits. Pensions for disabled people of group 3, as well as groups 2 and 1, are calculated in the same manner. The only difference is the size.

You cannot miss a scheduled medical examination without a good reason. If a person does not come at the appointed time, then it is necessary to have documentary evidence indicating a valid reason. Then you can calmly continue the procedure for receiving payments.

Types of pension

Payments for pensioners are divided by type:

• According to the age;
• For loss of a breadwinner;
• For disability;
• Social;
• Chernobyl;
• Military.

A long-service pension is paid to citizens who have accumulated a certain length of service and reached a certain age. If the age required for retirement has been reached, but there is not even 5 years of work experience, a social benefit is assigned.

People who have health problems with disability degrees 1, 2 and 3 are awarded a disability pension. But even this requires insurance experience, which should be from two to five years.

Military personnel, aviation workers and the Ministry of Internal Affairs receive a military pension. In this case, the experience must be at least 20 years.

A survivor's pension can be provided only if there are supporting documents confirming the applicant's incapacity for work and cohabitation with the deceased before his death. In addition, confirmation of the required insurance period from the breadwinner is required.

A social pension is granted only if certain conditions are met:

• Age is at least 60 years old, but an old-age pension cannot be granted;
• Low income, not counting disabled people of group 1;
• Damage caused during work, but compensation for damage is not provided.

How is the pension calculated?

Calculation of pension contributions by age is carried out using a special calculator, by multiplying the following components: wages for 36 months before retirement; ratio of wages and length of service. The formula for calculating a pension in Ukraine is as follows: P (amount of pension contributions in hryvnia) = Zs (average earnings for 36 months) x Kzp (salary coefficient) x Ks (experience coefficient). You can calculate the size of your future pension yourself using a pension calculator. You can download the calculator on the official website of the PFU.

What will happen after the reform?

The pension reform will launch a funded system. Ukrainians will have to pay another tax. These funds will be accumulated in a personal account.

The reform will not affect modern pensioners, but all Ukrainians under 35 years old will have to pay an additional 2% in 2021, and 7% in 2022. Ukrainians over 35 but under 55 years old can voluntarily join the savings system and pay contributions.

What awaits people who are under 35 years of age when the second level system is introduced?

• For them, the “Solidarity System” ceases to exist, i.e. the concept of “pension and insurance experience”.
• From 2% to 7% of contributions to the Pension Fund are transferred to personal accounts.
• The personal account will only be available upon reaching retirement age.
• If there is no official work, or the employer does not pay for you to the Pension Fund, then 0 UAH will accumulate on your personal account.

A personal savings account can be opened in one of three financial institutions - insurance company, non-state pension fund or an authorized bank.

In this case, the benefits of the insurance company outweigh. One of the main advantages of a personal savings account opened in an insurance company is the minimum profitability guaranteed by the Law of 4% (more precisely, up to 4, but in fact we have a full 4) on invested capital - NPFs and banks do not guarantee profit.

In the event of the death of an insurance company client, the money from his personal account (in some circumstances, even in double or triple the amount) will be transferred to the people specified by him when drawing up the savings pension agreement as beneficiaries under the agreement, that is, the savings will not be lost.

So, a personal savings account is a key component of the compulsory state pension insurance system, the only opportunity for the state to support every citizen of Ukraine in the personal accumulation of financial resources for a comfortable old age.

THIRD LEVEL: VOLUNTARY CUMULATIVE INSURANCE.

The system of compulsory state pension provision is not capable of providing a high level of pensions given the low amounts of compulsory pension contributions and unfavorable demographic conditions.

Participation in non-state pension provision allows you to create an additional source of pension payments to the mandatory state pension provision and ensure a higher standard of living upon reaching retirement age.

Find out the essence and advantages of endowment life insurance by reading the article LIFE INSURANCE. WHY GET LIFE INSURANCE?

Minimum and maximum pensions

The spread between the minimum, average and maximum pension in Ukraine is quite large. Data on the amount of pension contributions (hryvnia) for representatives of various professions are available in the diagram.

Pension calculations by profession The size of pensions for the country as a whole is presented in the table. Maximum 15600 UAH. Average 1900 UAH. Minimum 1247 UAH. The vast majority of Ukrainians receive a pension in the amount of UAH 2.0 thousand. Today, about 1 thousand people receive the maximum pension every month.

Expectations for 2021 for certain categories of pensioners

The draft Budget Law for 2021 does not yet provide data from the Ministry of Social Policy regarding social and pension insurance, so it is not clear to what extent the IMF requirements will be met.

But there is information about the provision of subsidies to PFU of about 156 billion hryvnia. This is more than this year (144 billion), and allows us to hope that pension payments will at least not stop in 2021. Let's see how certain categories of pensioners feel the changes.

Working pensioners

Nothing will change for them. The existing temporary rule limiting the amount of pension payments to working pensioners (85%) is extended for the entire 2021. However, pensions for some categories specified in the legislation, including veterans, will be paid in full.

Health and education workers

These categories of citizens remain within the scope of Law No. 911 of December 14, 2015.

As stated in paragraph “E” of Article 55, the moment of retirement for these citizens is postponed every year:

• for ½ year, starting from July 1, 2021 and starting from 50 years of experience;
• the process will end in 2026, when the early retirement age reaches 55.

The special length of service required for a long-service pension is also increasing:

• growth start date – April 1, 2015, required experience 25 years;
• the end of the process is April 1, 2024, and the experience must already be no less than 30 years.

Civil servants

According to Groysman, the current Prime Minister of Ukraine, the amount of PFU payments for a certain part of pensioners is too high. We are talking about the category of former civil servants: about 107 thousand of them have a pension of 5,600 hryvnia, 3 thousand - about 10,000, and 6 thousand - more than 20,000 hryvnia (now there is an upper limit - 10,740 hryvnia).

According to the law, which will be adopted soon, special pensions for civil servants (these are judges, prosecutors, officials, people's deputies) will be abolished, and this is expected to significantly relieve the solidarity part of the pension system.

But today, nevertheless, Law No. 911 is in force, it remains unchanged for now, and changes are only being announced.

Comparison with Russia

The minimum amount of social contributions in Russia is 8,703 rubles. ($139). The minimum pension in Ukraine is 1373 UAH. ($52). The difference is 167% in favor of the Russian Federation. Average pension contributions in the Russian Federation are 14,137 rubles. ($226), in the territory of a neighboring country - 2480 UAH. ($94). The difference is 140% in favor of the Russian Federation.

However, to understand the big picture, daily expenses should be taken into account, for example:

Buying a chicken carcass in the Russian Federation will cost 122 rubles/kg (1.95 dollars), in Ukraine - 53.9 UAH. ($2.06).

Russian beef sells for 321 rubles. (5.14 dollars), Ukrainian - 114.3 UAH. ($4.36).

Bread in the Russian Federation can be purchased for 45 rubles/kg (72 cents), for Ukrainians - 18 UAH/kg (69 cents).

Gasoline 92 in the Russian Federation - 42 rubles. (67 cents), in the neighboring state - 28.58 ($1.09).

In Ukraine, the cost of most products differs from the Russian Federation by 5−15%. However, the conflict with the Russian Federation is not in favor of the Ukrainians.

Age pension 2020-2021: the most important thing you need to know

Financial assistance from the state is calculated using a special equation. However, there is no universal rule - more than 20 pieces of legislation are used for the calculation. And this greatly complicates the process.

Special groups include:

• residents of ORDLO and Crimea who moved to the free territory of Ukraine;
• persons with disabilities;
• doctors;
• police officers;
• miners;
• combatants.

There are several types of pensions:

• the citizen reaches a certain age;
• a person with a disability;
• the family lost its breadwinner.

Most pensioners have long lived on amounts much less than the minimum subsistence limit. Why does this happen? The reason is the following - previously, pension calculations were simpler - the minimum wage was raised = the minimum pension was increased. But the IMF demanded changes, which the authorities agreed to.

The indexation of pensions was stopped, but prices continued to rise . As a result, pensioners found themselves in a difficult situation. Updating the pension system means that the state must support financially disabled children, pensioners, and children with disabilities - those who cannot obtain the required length of service. In October 2021, this category of the population received only 949 UAH, which is almost 1 million people. Since December, the amount has risen to UAH 1,373 - by 45%.

The payment system has been modernized, which means that Ukrainians are even more interested in when their pensions will increase. Working pensioners also received a positive change - 15% will no longer be withdrawn. This year they are trying to automate the payment process in order to protect every segment of the population.

Some of us are going through difficult times in life. Many people are interested in whether benefits for disabled people will be increased. The amount of payments is affected by the type of disability and the amount of the old-age pension.

The 1st group is allocated 100% of the pension, the 2nd - 90%, and the 3rd - 50%. It should be noted that the state allocates funds for social benefits for people with disabilities. There are no clearly established amounts, and each person receives an individual benefit.

From January 1, 2021, payments to military pensioners were also recalculated. The legislation stipulates that this category has the right to receive benefits of at least 40% of the minimum wage. We remind you that earnings also increased from 3723 UAH to 4173 UAH.

According to statistics from the Ministry of Social Policy, 553 thousand military pensioners live in Ukraine. Thanks to the increase in payments, about 90% of citizens will receive an additional increase by the end of 2021. Pensions for military personnel were raised in three stages. The first increases were in 2021, then in 2021, and the final stage - in 2020 UAH. Next year, military and security officials should receive a pension of 100% of the original amount. Regarding payments in 2021, it turns out to be + 3000 UAH.

Example: a former battalion commander of the Ukrainian Armed Forces had a pension of about 3,000 UAH. In 2021, he was awarded 4,500 UAH, and in 2021 and 2021 he will receive 5,250 and 6,000 UAH, respectively.

The government has been arguing for more than 10 years about how to create a successful three-tier funded system. The principle of its operation is clearly seen in the example of a sandwich made from cheese, bread and sausage:

• bread is the minimum level that a country is obliged to provide;
• cheese - deductions that come from a citizen’s salary every month;
• sausage - personal savings that go to funds outside the state.

It turns out that Ukrainian pensioners get a sandwich with only one piece of bread. The solution should be a law introducing a funded system. The idea is simple: each person will transfer a certain amount to a personal account for 35 years. The implementation has been delayed until early 2021. The following situation has arisen : all the improvements in the minimum pension payments did not really help - relative to the exchange rate, the size of the minimum pension in Ukraine has almost halved over the past 10 years.

An important factor is that the nation is aging. According to statistics, for 12 million working citizens there are almost 10 million pensioners. Earnings in envelopes does not help. When a person retires, he cannot count on a decent amount, and the fund receives minimal contributions.

There are many legislative acts and they are extensive, so it is difficult for an ordinary Ukrainian to calculate what kind of help he will receive from the state in the future. Many factors influence the size of your pension. Experts put forward the following advice: when you submit documents, indicate not the time when you received the highest salary, but the year when the salary was the largest compared to other payments in the country.

The authorities promise to soon create special programs that will allow you to independently calculate your own pension.

Will there be enough money in the Pension Fund to pay pensions?

The 2021 state budget provides for expenses to cover the Pension Fund deficit in the amount of UAH 167 billion (this year - UAH 150.1 billion). These funds will not be enough for timely and full payment of pensions. This year, the income and expenses of the Pension Fund were not balanced, and the Fund was forced to attract funds from the Single Treasury Account. As of December 1, 2021, the Pension Fund's debt to the Treasury on loans reached UAH 16.5 billion. Next year the situation will only worsen and the Pension Fund will be forced to raise borrowed funds in the amount of UAH 30–35 billion.

Important nuances

If the pensioner continues to work, then the amount of assistance from the state is 85% of the old-age pension. If his length of service increases by 2 years, the pension is recalculated. When calculating pensions for working pensioners, the size of their salary may also be taken into account. Recalculation is carried out 1 time/24 months, at the request of an elderly person. He will be able to do this at any time after acquiring new experience.

For working pensioners, pension recalculation is carried out once every 2 years. Many widows are interested in the question of the possibility of switching to their husband’s pension.

According to Ukrainian lawyers, the concept of “husband’s pension” does not exist. This formulation is used by PFU officials to assign small pension payments. If a woman’s husband received a large pension, she has the right to apply for a survivor’s pension. This is not the deceased spouse's pension or ½ of his benefit. This is a full-fledged type of pension contributions for the widow herself. You can find out about pensions in Bulgaria, Canada, Greece and Cyprus on our website. The amount of the benefit is calculated based on the husband’s length of service and salary. It amounts to 50% of the old age pension. This is true even if the deceased received disability benefits or did not receive any assistance from the state at all, but had the necessary length of service. Considering that the pension formula takes into account the average Ukrainian three-year salary, the calculated benefit will be significantly more than what the deceased spouse received.

Who can retire early?

In accordance with Ukrainian legislation, certain categories of citizens have the right to count on pension provision earlier than the due date.

So, first of all, this applies to workers in hazardous and hazardous industries. These include miners.

In addition, the following are entitled to a preferential pension:

• mothers of many children;
• mothers raising a disabled child;
• visually impaired;
• participants in armed conflicts;
• persons with rare genetic diseases (dwarfism).

Also, military personnel and law enforcement officers retire much earlier. However, it should be noted that they are assigned a pension in a special manner - depending on their length of service.