To work longer and save more: the media said he is waiting for the Ukrainians with the new pension reform

The draft pension reform, which is proposed by the government, provides for the establishment on the basis of three levels of the pension system the replacement rate of pre-retirement earnings at the level of 45%.

However, in developed countries, the criterion of adequacy of pensions is considered the replacement rate of 60-70% of this article for the DT.UA writes Vladimir Yatsenko.

According to the author, the relevant data is cited in the government’s presentation at the meeting of the Council of 16 June 2017.

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The so-called replacement rate of earnings, as noted. is an important measure of the adequacy of pension income in any pension system. It is defined as the percentage of the pension to previous earnings (usually in the last 5-10 years, or for the entire insurance period).

“In the government’s presentation at the meeting of the National Council of reforms on June 16, 2017 it is shown that of the three levels of the pension system, the expected replacement rate of earnings is expected to reach 45%, including: — 30% — of the joint system (1st level); — 10% — cumulative system (2nd level, which is still not implemented); — 5% from voluntary pension funds (3rd level)”, – stated in the article.

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“Because the actuarial “modernizing” (i.e. increase) of the ERUs is unlikely now politically possible future Ukrainian pensioners will have no alternative not only work longer, but spend less and save more,” – said the expert.

We will remind, this year in October to 5.5 million Ukrainian pensioners will receive an additional pension from 200 to 1000 UAH. The raise will be calculated individually for each retiree. Payments will increase more for those who have been longest in retirement, and whose pension has been “eaten” by inflation.

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