The Ministry of Social Policy explained the necessity of changes to the pension reform.

The Minister of Social Policy of Ukraine Daria Marchak explained why changes to the pension reform are necessary. According to her, this project is aimed at restoring fairness in terms of pension sizes for many citizens.

Marchak claims that the reform of the pension system is extremely necessary. This is due to two important factors.

"And we have developed a project for the reform of solidarity pension provision. We have also developed a project that allows for the introduction of funded pension provision in the future. We are based on two important factors. The first factor – we are obliged to make the system simple and understandable. The system (now ed.) is fantastically complex, has many collisions, is not fair enough, there are many situations when the pension sizes are so low that the state then has to constantly increase the pension sizes with additional payments and supplements," she explained.

According to Marchak, this reform project uses a model that is operational in many European countries, such as Germany, Austria, Lithuania, Latvia, Cyprus, and others. The peculiarity of this model lies in its simplicity.

"This model works in such a way that a person can understand how it works and what the size of their pension depends on. According to this model, the amount of contributions that are paid monthly into the pension system from the salary is converted into a unified synthetic unit, and the person knows the number of points they earn and knows the value of these points.

Currently, the reform is being coordinated with key stakeholders. After the financial part of the reform is agreed upon, it will be submitted for consideration by the Cabinet of Ministers and the Verkhovna Rada.

Let us remind you that pensions in Ukraine are expected to grow in 2025.