As will raise pensions in October: the part of Ukrainians will not feel an increase, other “get rich” 1,000 hryvnia

“Positive changes are waiting for the Ukrainians immediately after the adoption of the reform”, – said the Minister of social policy Andrei Reva. We are talking about promised last year, “modernizing” of pensions. Legacy payments promise to convert, in October of this year, if the government’s draft pension reform will Happy. The Ministry of social policy believe that this will allow you to change the “negative attitude of Ukrainians to the reforms.” The website “Today” figured out how the Ukrainians will recalculate pensions.

Nobody touches the “modernizing”

In Ukraine, a little less than 12 million pensioners. 5.6 million (46%) getting a raise in the framework of “modernization”. Another three million (25%) will receive a small increase under the indexation of social standards. For the remaining 3.4 million (or 28%) pension will not change.

“First of all, people who retired in the last three or four years: in 2014, 2015, 2016 and 2017. They have a salary base and not so outdated,” says senior researcher of the Institute of demography Lydia Tkachenko.

“First of all, people who retired in the last three or four years: in 2014, 2015, 2016 and 2017. They have a salary base and not so outdated,” says Lydia Tkachenko.

Photo: archive

By the way, every year on a pension in Ukraine are approximately 600 thousand people. In addition to the “young” pensioners a raise may not get the Ukrainians who came on a holiday “special” rights. For example, the Ukrainian, who retired in 2014 year, worked 30 years and earned two times more than the national average, is the estimated amount of the pension of 2,400 USD. Taking account of indexation at the moment he can get about 2536 hryvnia.

If the same pension is computed according to the formula you would use in “modernizing”, the payout amount will be reduced to 2258 hryvnia. A pension will not be reduced but increase will not be.

In the formula of calculation of pension is taken into account, the average salary over the last three years. The actual figure is – 3764 hryvnia. But those who have retired early, thought of other salaries. For example, in 2007 the average salary was only 1197,9 hryvnia. According to this indicator, last time I counted the payment. As a result, about eight million Ukrainians receive a pension on the basis of the estimated size in 1197,9 hryvnia.

Therefore, noted in the Ministry of social policy, the question of “modernization” of pensions was long overdue.

Who and how will raise pensions

“Modernized” retirement on the first of October will receive 5.6 million Ukrainians. For each amount of gain calculate individually. “To get rich” in 1000 hryvnia can Ukrainians whose salary was at least two times higher in the country and who has retired prior to 2007 and have more than 35 years of experience. From 500 to 1000 UAH will receive an additional those who had a salary at least 1.5 times higher than average, and have more than 35 years of experience. If wages, for example, was twice the national average, is now retired (with 35 years of experience) gets 1800 hryvnia, and after the “modernization” will be to 2634 hryvnia.

  • 1 million – will receive an increase of more than 1,000 hryvnia
  • 2 million will get a raise from 500 to 1000 hryvnia
  • 2.5 million will get a raise to 500 hryvnia

Photo: archive

Recall that the pension of Ukrainians depends on three indicators: the average wage in the country at the time when he retired, length of service and the ratio of own wage to the average.

“Modernity, to be held in October this year, perhaps the only thing that definitely will happen and that will really give increased pensions. All other measures do not directly imply higher pensions, even quite the contrary. For example, the abolition of special pensions or pensions on superannuation. I’m not saying it’s wrong, but is that a rise in pensions? The downgrade of one year of experience in the pension formula from 1.35% to 1% will clearly lead to the fact that new retirees payments will be one-quarter lower than under the current rules,” says Lydia Tkachenko.

Three million of Ukrainians will receive in October a pension to 61 UAH. Thus, in the framework of indexation of social standards, pensions will rise by 5.2% from the minimal salary.