In Ukraine, the requirements for insurance experience to retire at the age of 60 are gradually increasing. As of today, the average work experience of individuals reaching retirement age is 33 years and 9 months. However, starting from 2027, to retire on time, one will need at least 34 years of experience, and from 2028, it will be 35 years.
This is reported by Finway
Gradual Increase in Experience Requirements
Last year, pension payments were granted to 210.5 thousand Ukrainians. Currently, to receive a pension at the age of 60, one must have at least 32 years of insurance experience. The requirements for experience will continue to rise: in 2026, they will be 33 years, in 2027 — 34, and in 2028 — 35 years. Those who cannot meet these conditions will be forced to work until 63 or even 65 years old to qualify for a pension.
Impact of External Factors and Changes in Approaches to Calculating Experience
In 2017, when the phased increase in experience requirements was introduced, it was predicted that by 2028, about 45% of retirees would be able to retire at 60, another 50% at 63, and only 5% at 65. However, these predictions were made before the coronavirus pandemic and the onset of full-scale war, which significantly impacted the labor market and, consequently, the ability to accumulate the necessary experience. A significant portion of Ukrainians still work informally, complicating compliance with the new requirements.
For comparison, last year, when 31 years of experience were required to retire at 60, 156.8 thousand individuals took advantage of this opportunity, which is two-thirds of the total number of new retirees. In the coming years, this proportion will significantly decrease, and at least half of Ukrainians will work until 63-65 years old. At the same time, the importance of accurate accounting of insurance experience is also increasing.
“Moreover, until 2004, experience was calculated based on entries in employment records. After 2004, the period of contribution payments is taken into account. Over time, meeting the experience requirement is becoming more and more difficult. For example, since 2004, education and military service have ceased to be counted as experience. Now, to meet the requirement, Ukrainians must work continuously for almost their entire lives.”
Changes in legislation stipulate that for periods of work to be counted towards insurance experience after 2004, only the time during which pension contributions were paid for the individual is considered. Periods of education or military service are no longer counted, so it is important for Ukrainians to monitor the legalization of their work and the accumulation of the necessary experience for timely retirement.