The government plans to reduce excessively high pensions in 2026: who will receive less.

According to inkorr.com: In the draft state budget for 2026, the government decided to extend the reduced coefficients for the calculation of large pensions. This will lead to a decrease in the amounts paid to some Ukrainian pensioners who receive the highest pensions.

The first restriction will affect former civil servants, diplomats, and military personnel, whose pensions are appointed under special laws. It concerns those whose monthly payments exceed 25,950 hryvnias — this is equivalent to ten minimum subsistence levels for non-working individuals.

Representatives of the Pension Fund clarified that the basic part of the pension within the ten minimums will remain unchanged. However, for the amount exceeding this limit, reducing coefficients will be applied. The greater the excess, the smaller the share that the pensioner actually receives.

Pension indexing and budget expenditures

This system works on the principle of gradual reduction: from a coefficient of 0.5 for payments exceeding one minimum to 0.1 for amounts exceeding twenty-one minimums.

Despite the decrease in large payments, pension indexing will continue in 2026. The process will start on March 1 and will cover all categories of pensioners. The overall draft budget for pension provision plans to allocate over one trillion hryvnias, of which 251.3 billion hryvnias will be directed as a transfer to the Pension Fund.

Thus, the government plans to implement the reduction of large pensions by applying reducing coefficients in 2026, while simultaneously preserving pension indexing for all categories of pensioners. A total of over 1 trillion hryvnias is planned for pension provision.

This initiative has prompted mixed reactions among society, as on one hand, the reduction of large pensions may affect the lives of those who already receive significant payments, while on the other hand, pension indexing for everyone will be an important financial support. The government asserts that this decision is intended to ensure the stability of the pension system amid constant economic challenges.