Lucky not all: who will not affect the October “modernity” of pensions

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 They have a salary base and not so outdated,” says senior researcher of the Institute of demography Lydia Tkachenko.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 They have a salary base and not so outdated,” says Lydia Tkachenko.

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.

Read more on pension reform can be read here.

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