A huge Pension Fund deficit could lead to a sharp reduction of payments to pensioners
Now the budget lacks 16 billion. Now Ukrainians have drastically reduced pension. This warned Galina Tretyakova, an expert in the field of pensions.
According to experts, already now the citizens of Ukraine after the departure on retirement receive on average 35% of their salary. At the same time, standards of the International labour organization, which Ukraine pledged to carry out, require to provide workers with pensions not less than 40% of earnings. According to Galina Tretyakova, the replacement rate will decline every year.
Pension reform the Cabinet and the plans of the officials to reduce the assessment ratio of length from 1.35 to 1% would have to reduce all future payments. The expert believes that even the growth in wages and the reduction of the informal labour market will not be able to save the situation. Galina Tretyakov is sure that the majority of Ukrainians feel sad innovations in 2019. In 2018 in the framework of the “transition” officials temporarily left in the formula. So the financiers have honored the average salary for two, and not three years.
But after a few months the citizens retiring, will receive approximately 26% less than he would have paid under similar conditions, but with the old formula of 2017. That is, modern retirees are losing a quarter of his pension.
It should be noted that in Ukraine introduced new terms of retirement. Now the government has launched priority to take into account the age of employees. So after the reform of the Ukrainian in 2019 will be able to retire at age 60 if you have worked at least 26. But older people with work experience from 16 to 25 years can receive a pension no earlier than otmet 63rd birthday. Those who worked even less, can ask for retirement only after 65.
Recall how a wife can get her husband’s pension: “the amount released is more.”
As reported Politeka in Ukraine, introducing funded pensions: who gets the money in case of death.
Also Politeka wrote that seniors can change the type of payout you will receive more details.