Ukrainians in retirement: the big pension at the pilot-test, and minimal make millions

The average pension in Ukraine is UAH 1828, and the lowest total 1,247 USD. Richer only deserved vacation live judges, they are entitled to 80% of earnings. After the increase of salaries “judges” will receive the “retired” tens of thousands of hryvnia.

At the moment, the biggest pension in Ukraine – 58, 7 thousand hryvnia, given the hero of Ukraine, test pilot. The modern pensioners are retired can not be assigned, by decision of the government, there are restrictions – no more than 10, 7 thousand hryvnias on one person. However, the “cut” is already assigned to a payment prohibited by law. As senior researcher of the Institute of demography Lydia Tkachenko, judges who retire this year, the restriction “no greater than 10.7 thousand in retirement” will not feel – for them the constitutional court, this rule was canceled. How wrote on his page in the social network the people’s Deputy Viktor Pynzenyk, the judges of the constitutional Court retired in poverty don’t have. So, pension “judges” will be more than 200 thousand UAH (80% of salary).

The average size of pensions at the moment – 1828 UAH. The average pension of a judge is 22 thousand, the MP – 15 thousand, scientist – 3.7 thousand officials of 3.3 million hryvnia. Almost two million Ukrainian pensioners receive less than 1400 UAH 2.4 million – less than 1500 UAH. Among the “rich retirees” (retirement with more than 10 thousand) – 19 thousand Ukrainians, 0.2% of the total number of people “in retirement”.

Until 2012, the pension increased by 20% from the growth of the average wage in the country – for several years this rule of law does not apply. As a result, according to the Ministry of social policy, about eight million Ukrainians have calculated the basic amount of the pension is less than subsistence minimum. As explained by the expert organization “Actuarial-pension consultant” Alexander Tkach, officials decided that for the “actualization” of the payments will be sufficient to index the whole amount of the pension to the inflation rate (previously indexed only the part that is within the limits of the subsistence minimum).

However, this indexation was suspended in 2014 due to a sharp rise in prices. So, over the past three years the inflation rate had reached 80.6 percent. Therefore, the minimum pension since 2014 by the end of 2016, the year was to increase from 949 to 1713 USD. And this year up to 1851 hryvnia (according to the forecast of Ministry of economic development, inflation will be at the level of 8.1%). However, at the moment, the minimum pension – 1247 UAH, and by the end of this year it is planned to increase to 1373 UAH.

Last year retired Ukraine spent 255 billion UAH 142 billion deficit, which is compensated for by the state budget. This year the budget increased to 284 billion hryvnia, the deficit of $ 141 billion hryvnia. To increase the revenue part of the budget was due to the increase in the minimum wage two times from January 2017.