Ukrainian pensioners are among the poorest in Europe. So, in Belarus the minimum payout nearly 1.7 times higher than the Ukrainian, and in Poland – five times more. To remedy the situation, the government proposes to reform and restore order in the pension system. To reduce the number of beneficiaries, to recalculate and increase already assigned to pensions and to reduce the size of the pensions that will be assigned. Such measures together with stricter requirements for pensions will reduce the deficit of the Pension Fund (PF). After “hole” in the budget will reduce in Ukraine plan to introduce a funded pension. They will allow Ukrainians “retirement” to get a decent payout. The website “Today” found out what pension are Ukrainians and how to change the size of payments this year.
They live retired
The amount of the pension depends only on two parameters: the length of service and salary. The highest salaries are in the capital, and the highest pensions also receive Kiev. The average wage in the capital – 2474 hryvnia, according to the latest data PF. More than two thousand, on average, receive just three regions – Dnipropetrovsk, Donetsk and Lugansk. By the way, in Kiev region (excluding Moscow), the average pension is below two thousand only 1952 of the hryvnia.
At the same time, the average Ukrainian pension – 1886 hryvnia. Receive less than the average in 18 of 24 areas. And the poorest pensioners living in the Ternopil region (the average pension 1621 UAH).
According to the Ministry of social policy, the actual cost of living (i.e. the cost of the consumer basket in current prices) – 2 562 hryvnia. That is, throughout Ukraine, excluding Kyiv, pension is not enough for the required set of goods and services. The Institute of demography and social studies explain the Ukrainians, who receive less than the actual subsistence level, living below the poverty line.
“The basket is not under the power of the “average” pensioner. However, a significant rise in the basket is due to higher energy prices in particular and services in General. This problem, according to the government plan, shall be removed by a subsidy, the mechanism of which successfully reduces the cost of the consumer basket,” explains the analyst of “Alpari” Anton Kozyura.
“The basket is not under the power of the “average” pensioner. However, a significant rise in the basket is due to higher energy prices in particular and services in General. This problem, according to the government plan, shall be removed by a subsidy, the mechanism of which successfully reduces the cost of the consumer basket,” explains Anton Kozyura.
The Ministry of social policy agree that the Ukrainians “retirement” get “penny”. “We have from the budget to pick up the money, where there is so little to just our seniors to keep on that miserable level, which is today. We pay them – like we have done. But what do we pay them? Penny. They deserve to be paid more. And we have opportunities there,” – said the Minister sotspolitiki Andrey Reva size of the Ukrainian pensions last year.
It should be noted that not all Ukrainians live in poverty in old age. Withindependent user the amount of the pension of a judge – more than 22 thousand hryvnias, members of Parliament on retirement receive an average of 15 thousand hryvnias, and prosecutors – about 10 thousand. This is due to the fact that these categories retire under special laws. So, parliamentarians and prosecutors are entitled to pension to 60% of salary, and the judges – 80%. In Ukraine, only 2969 judges, prosecutors and 5815 969 parliamentarians receive pensions. Given that the total number of pensioners exceeded 12 million, “high”, the pension received a smaller percentage of Ukrainians.
How to change the size of the pension in 2017
Pensions are increased several times a year. The last time Ukrainians increased payment in may, and the next increase is expected in October. First, three million pensioners will increase payments to 61 UAH, that is 5.2% of the minimal salary. The minimum pension will increase to 1373 UAH.
Second, 5.6 million pensions “savremena”. The Ministry of social policy promise that this will be the first “positive change”. But in order to recalculate the pensions in October, in September the Parliament should adopt the government’s draft pension reform.
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 the experience of 35 years) who retired before 2007, and receives approximately 1,800 hryvnia, and after the “modernization” will be to 2634 hryvnia.
“Under “modernity” will not get people who have retired in last three to 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.
“Under “modernity” will not get people who have retired in last three to four years: in 2014, 2015, 2016 and 2017. They have a salary base and not so outdated,” says Lydia Tkachenko.
PF estimates that the average Ukrainian pension this year will increase to 2000 hryvnia. However, in their calculations, the Agency did not consider “modernity”. At the request of the website “Today” said in the official calculations take into account only those laws and regulations that are already adopted. Pension reform and, therefore, “modernity”, at the moment only voted in the first reading. In autumn, the Parliament will consider the bill in the first reading in General. Officials predict that the vote will take place in September. This will allow to recalculate the pensions in the promised time. In addition, such a commitment took over the Ukrainian government in the Memorandum with the IMF. Including the adoption of the pension reform depends on the fate of the next tranche for Ukraine.
Money on “modernizing” plan to take over the expense of an overfulfillment of the budget PF. This year the shortage will be around 141 billion. By raising the minimum wage (and with it increased the minimum payment “retired” pay) the Ukrainians have paid to the pension Fund by 11 billion more than anticipated in the budget.
We will remind, in Poland pensioners receive two pensions from the solidarity and savings levels. Such a system was implemented in the late 90s. the Minimum pension in Poland – more than seven thousand (1,000 zlotys). That’s five times more than in Ukraine, but several times less than, for example, in France.In the USA the retirement age is 67 years. In addition, for pension only 10 years to pay 15% of their salary to the Pension Fund. American pension system appeared in 1935 when Franklin Roosevelt signed the law “On social security” (Social Security Act). The average pension – $ 1,500 (39 thousand hryvnia at the current exchange rate of the hryvnia).