Razumkov Centre: Pension system: Can Ukrainian pensions be saved?

2022-11-16 | Expert publications, State of the economy

With the deterioration of the wellbeing of the majority of the Ukrainian population caused by the Russian aggression, pensions acquire special relevance. The system of solidarity pension insurance in Ukraine is in crisis, and its future is uncertain. According to the UN, Ukraine is among the top 15 countries with the highest rates of population decline. The UN forecasts that by 2050, the share of people in the age of 60+ will reach 32%. The ratio between the able-bodied population and pensioners will almost double. Demographic changes in Ukraine are generally in line with the global trends, but their pace is faster. Low birth rates and longer life expectancy seriously affect public finances, especially the pension system. Other conditions being equal, a reduction of the working-age population results in a decrease in the number of single social contribution payers, while expenditures on social security, including pensions, will rise with the increase in the share of elderly people.

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