The Cabinet of Ministers of Ukraine has announced the implementation of a unified predictable pension system that will ensure a clear connection between the amount of insurance contributions, the duration of their payment, and the future pension amount.
This is reported by Finway
Key Elements of Pension Reform
The goal of the reform is to create a fair and financially stable pension provision system that will encourage citizens to officially pay contributions and minimize imbalances in pension provision.
According to the new model, a gradual transition from special pensions in favor of professional ones is planned, as well as the introduction of a mandatory cumulative system. This approach will complement the existing solidarity system, increasing the transparency and predictability of future payments.
Among the legislative initiatives are the improvement of mechanisms for calculating pensions and accounting for citizens’ pension rights. Special attention is planned to be given to the adoption of a bill on cumulative pension provision.
Implementation Stages in 2025–2026
By the end of 2025, the government is preparing to submit a series of bills to parliament, including:
- on the implementation of a cumulative pension system;
- regarding amendments to the law “On Mandatory State Pension Insurance”;
- on improving the accounting of pension rights and professional programs;
- concerning pension payments and lifetime monetary maintenance for retired judges.
In 2026, it is planned to improve the mechanisms for calculating pensions. According to preliminary calculations by the government, about 5 million Ukrainian citizens will receive a pension of no less than 4000 hryvnias per month.
It is intended to establish a direct connection between insurance contributions, the duration of their payment, and the amount of the pension.