Ukrainians will need to earn points to receive a higher pension.

Details of the pension reform in Ukraine from the Deputy Minister of Social Policy

Darya Marchak, Deputy Minister of Social Policy, spoke about the details of the major pension reform in Ukraine. In the process of preparing for the reform, the Ministry of Social Policy used the experience of Western countries, particularly Lithuania, to compensate for the devaluation of the calculated pension due to the aging of the salary base.

The new system envisages that pensions will consist of two parts: social and individual. The amount of the social part will be the same for all citizens, but the individual part will depend on the worker's service and salary. If the earnings were average throughout the year, units of points are accrued. For every twice the average earnings, an additional point is awarded. For example, if earnings are five times higher, five points are awarded. If earnings are less than average, the number of points will be less.

"Lithuania's influence on our pension reform is significant. Their system works in the same way. In 2023, every pensioner in Lithuania receives 5.7 euros for each point."

According to these calculations, if a person has worked for 35 years and received an average salary, they are awarded one point, which guarantees a pension of 200 euros. However, this is only the individual part, whereas the social part in Lithuania was more than 246 euros per month. Thus, a pensioner in Lithuania with such service and salary receives almost 446 euros or 18.5 thousand hryvnias.

It is worth remembering that there is also the possibility to retire 15 years earlier, as explained to Ukrainians.