Editor-in-chief (Ukraine): the Ministry predicted the collapse of the pension system of Ukraine

The Minister of social policy of Ukraine Marina Lazebnaya said about the necessity of introducing in Ukraine the funded pension system, which will be implemented at the expense of the employee and the employer.

“Ukraine is in the TOP 15 countries with the fastest rates of population decline, according to the UN. And in the coming decades, population decline will occur at the expense of the able-bodied. In 5 years the population will be reduced by 18%, the ratio between retirees and workers will increase by almost half. Contributions of working and now is not enough to ensure the necessary level of life of pensioners, and in the future the situation will worsen”, — the press-service of the Ministry.

According to Lazebny, funds should be available to the public. She added that this initiative will help legalize the employment in the country.

In our opinion, reasonable alternative to the introduction of the second pillar of the pension system does not exist. Therefore, we need to introduce a funded system with feasible contributions that will be paid by the employee and the employer. Additionally this system will facilitate the legalization of employment. Success can be achieved only through a close dialogue between government and parties of employees and employers, we need to find a balance of interests,” she said.

The Minister stressed that a comprehensive program with a clear algorithm of action for decent pension provision of citizens of Ukraine.

Recall that in may 2020 in Ukraine from 11.4 million pensioners will receive the increase under the indexing only 6.9 million people.

Earlier, Prime Minister Denis Shmyhal said that in the near future the pensions of Ukrainian pensioners will pay under a mixed system, so the citizens after retirement will be able to receive two pensions simultaneously.