Pensions in Ukraine are even lower than they seem: what saves pensioners

The current formula for calculating future pensions is not only unfair, but also, in essence, makes pensioners completely dependent on the government's decision. The reason for this is that the pension calculation formula makes retirement payments so meager that the Cabinet of Ministers has to increase these payments to the minimum amount through various allowances.

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This is reported in his column for “Ukrainian Pravda” by the People's Deputy of Ukraine Danylo Getmantsev . According to him, the amount of the payment is influenced by dozens of factors: from the year of retirement to the number of “supplements”, which are constantly changing. To compensate for the shortcomings of the basic formula for calculating pensions, the government and parliament are constantly inventing new ways to “support” pensioners. Among them are supplements to the subsistence minimum and the minimum pension, “age allowances”, indexation.

The politician gives an example of a person receiving an average salary, working for 30 years and retiring in 2011. Their basic (insurance) pension will be UAH 1,129. Another example: a person worked for 32 years, received a minimum wage, retired in 2025. Their pension will be UAH 1,927.

“In both the first and second cases, the pension does not “reach” the established subsistence minimum for disabled persons – 2,361 UAH. The state pays such pensioners state targeted assistance up to the subsistence minimum,” the politician summarizes.

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According to the MP, although the state makes additional payments so that people receive at least the minimum, in this way they equalize everyone – regardless of how much they worked and paid contributions. And now there are more than 100 types of additional payments, allowances and compensations – some of them are fixed, the rest depend on the subsistence minimum. However, only a small number are determined by laws, the rest are established by government resolutions. That is, the government can change these rules without parliament, and this makes the system unstable and unpredictable.

“As a result, some pensions consist of only 10% of the main part, and the rest are additional payments, allowances, and compensations. Therefore, the pension system turns into a confusing mosaic of various elements, in which it is difficult to find logic,” the politician emphasizes.

Meanwhile, in November, some Ukrainian pensioners will be able to receive a supplement to their pensions.

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