Expert Lydia Tkachenko noted that in a few years only half of Ukrainians will have enough insurance coverage to retire at age 60. According to him, we can expect the retirement age to increase in Ukraine.
The insurance periods of Ukrainians who plan to retire due to age in 2024 will increase. They have to pay contributions to compulsory retirement insurance for 12 months longer than in the previous year. Not all Ukrainians will be able to work long enough to retire at 60. The Observer publication talked about what to expect from January 1.
Important
60-year-old Ukrainian citizens who will retire in 2023 must have at least 30 years of insurance experience. But starting from January 1, you need to work longer – this is stated in Article 26 of the Law of Ukraine “Compulsory State Pension Insurance”. Journalists published statements by Lydia Tkachenko, senior researcher at the Institute for Demographic and Social Research. Tkachenko noted that a significant portion of Ukrainians will have problems in connection with the requirements of the law.
Pension in Ukraine – changes from January 1, 2024
Ukrainians have the right to retire at the age of 60 as stated in the law. However, in order to receive a pension, you must pay insurance premiums for a certain number of years. The payment period will increase by 12 months every year until 2028.
Retirement experience in 2024:
- from the age of 31 – if the citizen is over 60 years old;
- From the age of 21 – if you are 63 years old;
- From the age of 15 – if you are over 65 years of age.
Retirement Conditions – Details
Lydia Tkachenko noted that the average insurance period of Ukrainians is 32 years. So today, some Ukrainian citizens can receive an old-age pension without any problems. The expert suggested that soon “increasing the length of service will become a real problem for a certain number of Ukrainians.”
The reason for possible problems is that the insurance period increases further. It is also worth taking into account the extraordinary events that have occurred in the lives of Ukrainians in recent years. For example, the journalists’ interlocutor listed the Covid-19 epidemic and the Russian occupation. Therefore, according to Tkachenko, it is worth raising the retirement age rather than introducing conditions for receiving pension payments.
The expert briefly reminded the background of the issue. Especially about the features of the pension reform that started in 2017. The International Monetary Fund recommended that the Ukrainian government simply raise the retirement age. But the government decided to take a different path: it changed the rules for receiving pensions. Since 2017, the time you have to pay insurance premiums to retire has been increasing every year.
According to Tkachenko, only 55 percent of Ukrainians who turn 60 in 2027 will be able to retire and receive a pension. Therefore, he states that the government will need to make changes to the legislation and raise the retirement age.
“This will have to be done sooner or later. How critical the situation was could only be said after the war. “Making any predictions in an environment of extreme uncertainty would be too optimistic,” he said.
Not enough insurance experience – what to do
The Ministry of Social Policy explained to Ukrainians that if a citizen wants to receive a pension, but does not have sufficient insurance experience, open years can be “bought”. To do this, you need to go through a certain procedure on the Pension Fund portal – you do not need to visit regional offices in person.
The Ministry of Social Policies also reported how the minimum amount of insurance premium will be calculated: 22% of the minimum wage. The minimum wage in 2023 is 6,700 UAH. Therefore, the minimum insurance premium is 1,474 UAH. In 2024, the contribution amount will increase and will be equal to 1,562 UAH. At the same time, the amount of the contribution may be higher – the person independently determines how much he wants and has the ability to pay.
We remind you that the cost of living will increase in 2024, and therefore the size of the minimum and maximum pension will increase, as well as some other payments from the state. There will also be an increase in pensions Focus figured out who would make more money.
Source: Focus
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