Funded pensions are planned to be launched in Ukraine as early as January 2026. This is stated in the draft law on pension reform, which was published by the Ministry of Social Policy, Kommersant Ukrainsky reports.
The document states that from 2026, Ukraine will have a three-tier pension system. The first tier will be solidarity payments. The second tier is accumulative payments. And the third tier will include voluntary non-state pension provision. Thus, the relevant ministry wants to ensure that future pensioners receive payments that will be more than half of their salary.
Solidarity payments will be updated as follows: the pension will consist of two components. The first is an insurance pension. which Ukrainians now receive. The second is basic payments. They will be mandatory and the same for all pensioners.
The insurance pension will be calculated in a new way: instead of cumbersome formulas, a point system will be introduced, numerous allowances and special allowances will disappear, so that the amount of payments will be the subsistence minimum guaranteed by the Constitution, and special pensions will be taken out of the brackets of the solidarity level.
What is known about funded pensions
The size of future payments depends solely on how much a person has saved for old age. Individual pension accounts will be opened for each working Ukrainian, which will be replenished monthly by employers and the state.
Unlike contributions to the solidarity pension fund (which are immediately spent on payments to current pensioners), the funds in the funded fund will remain the property of the person. For example, they can be inherited.
Access to the funds will be opened only after retirement. The accumulative fund, which will manage this money, will invest it in order to protect against inflation and increase it.
