The first step of the pension reform scheduled for October of this year. 5.6 million pensions (all in Ukraine 12 million pensioners) recalculated according to the updated formula. First, the average for three years of salaries will increase to 3764 UAH. While 8.2 million pensioners currently receive pensions from the calculation of the “legacy” of the average country salary in 1197 UAH. Second, each year of service will cost of 1.35% of earnings, both now and in only 1%.
For example, now Ukrainian, who retired in 2007 and received a salary two times higher than the average of 30 years can apply for retirement in about 1875 hryvnia. After “modernizing” the same retiree would receive 2258 hryvnia.
How “rich” Ukrainians in retirement:
- to 50 UAH 8.6 per cent (483 thousand pensioners)
- from 50 to 100 hryvnia and 6.3% (356 of thousands of retirees)
- from 100 to 200 UAH 8.3 per cent (468 thousand pensioners)
- from 200 to 300 hryvnia to 8.1% (457 thousand pensioners)
- from 300 to 400 UAH 7,6% (427 thousand pensioners)
- 400 to 500 USD – 5,8% (323 thousand pensioners)
- from 500 to 600 UAH – 6% (327 thousand pensioners)
- from 600 to 700 hryvnias of 6.4% (360 thousand pensioners)
- from 700 to 800 UAH at 8.2% (460 thousand pensioners)
- from 800 to 900 UAH 6,2% (347 thousand pensioners)
- from 900 to 1000 hryvnia, and 8.7% (487 thousand pensioners)
- from 1000 UAH 19.7 per cent (1.1 million pensioners)
As explained by a senior researcher of the Institute of demography and social studies Lydia Tkachenko, an increase of 1000 UAH will be able to get the Ukrainians, who have long retired and had a high salary (several times higher than average).
At the same time, the “modernizing” touches “young” pensioners. “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 They have a salary base and not so outdated,” says Lydia Tkachenko.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 500-600 thousand people. In addition to the “young” pensioners a raise may not get the Ukrainians who came on a holiday “special” rights.
