Autumn in Ukraine will consider in the second reading and the whole government project of pension reform. The document envisages a series of innovations both for current and for future pensioners. Enter “modernity” (5.6 million pensions will be recalculated, as a result, they will grow from 200 to more than 1000 UAH), stricter rules on the calculation of seniority. It also introduces the so-called “effective retirement age” – the part of the Ukrainians will retire at 63 or 65 years. The website “Today” has collected the answers to the main questions on pension reform in Ukraine.
If I don’t have 35 years of experience, I do not get a pension?
No, get. To earn a pension, enough to have 15 years of experience. The only difference is that now the Ukrainians with 15 years of experience retire at 60 years, and in 2028-m, if the reform will take, will retire at 65.
The minimum requirement for a pension at 65 is not changed, it was fixed at 15 years. But the requirements for pension at 63 and 60 years will grow 10 years, increasing each year by 12 months. So, next year, in 60 years to receive his pension can the Ukrainians with 25 years of experience, and by 2028-mu need to work at least 35 years.
Read more about how to change the requirements for experience, you can learn by reading infographics.
Say that experience will earn only the minimum pension. Is that so?
This is not so. The amount of the pension will be determined individually and be considered by the formula. In this case the law already is the norm – the amount of pension on age cannot be below the subsistence level for the disabled. This amount (currently 1312 UAH) and called minimum pension. If you find that the amount of the pension calculated according to the formula below 1312 UAH, at the expense of the Pension Fund of its “reach” of the minimal salary.
The pension is calculated by the following formula: the average salary over the last three years multiplied by the ratio of own wage to the average for the country multiplied by experience and by 1.35% today or 1% after the reform. The website “Today” has developed a calculator which allows to calculate the amount of pension current at the moment indicators.
How many years of experience You will have time to work out:
Wages at the moment:
The result: –
However, it is worth considering that if you have less than 15 years of experience, the pension you are generally not entitled to, and if you do not have time to earn the necessary experience, you will retire later. For example, in five years “time” on a holiday will the Ukrainians with 30 years of experience. If you have only 25 years of service, pension will be available only in 63 years.
If I can retire at 65 years, life expectancy in Ukraine is only 72, which means I’ll be retired in just seven years?
Indeed, according to the latest who data, life expectancy in Ukraine (and men and women) is 72 years. While women live on average five to seven years longer than men. However, the pension system, these figures are irrelevant.
The fact that life expectancy takes into account mortality at any age, including in early childhood. To understand about how many Ukrainians live in retirement, you need to use data on life expectancy after age 60. Now, Ukrainians who live to retirement age (60 years), live on average another 18 years.
The Ukrainian, who had retired at 65, there are all chances of living in retirement an average of 13 years. In comparison with countries of Western Europe. However, as demographers say, biologically, the Ukrainians are no different from the Germans or the French. If you exercise, time to pass medical examinations and eat right in retirement you can live not 18, and 30 years.
And Ukrainians killed in the first military action in the Donbas and harmful working conditions, and neglect their health. According to statistics, a man in a EU country on average live 13 years longer than Ukrainians. “It very much. You need to keep in mind that biology imposed adverse socio-economic factors that are either characteristic of men, or more affect them,” explains head of the Department of research of demographic processes and population policy Iryna Kurylo.
And those who do not have 15 years of experience, must work all my life?
No. The pension was so Ukrainians are not entitled, and that social assistance from the state they can get. Now about 100 thousand Ukrainians of retirement age do not get a pension. However, according to the law “On state social assistance to persons who are not eligible for retirement”, the amount of such aid is only 30% of the subsistence minimum for the disabled.
As has told the expert in the sphere of pension provision, candidate of economic Sciences Lydia Tkachenko, if the total income of Ukrainians over the age of 60 is less than the minimum pension, he has the right to address in bodies of social protection and social benefits in addition to the Supplement to the subsistence level.
And what experience will be taken into account? Higher education is also considered?
We are talking only about the insurance period, i.e. the period when the Ukrainians worked and paid contributions to the Pension Fund. University education is not considered as experience since 2004. Also, the insurance period shall not include the decree in the army.
Thus, Ukrainian after graduation must work almost continuously. Experts are sure that the requirement of 35 years is consistent with international practice. The maximum requirement in the EU for more than 40 years of experience.