The Ukrainian government is developing a bill to introduce a funded pension system that will complement the current solidarity model. The document will soon be submitted to the Verkhovna Rada for consideration. As IZ reports with reference to the Judicial and Legal Newspaper, the new system will allow citizens to accumulate pension funds in personal accounts, and after three years people will be able to use their savings.
As explained by People's Deputy Oleksiy Leonov, in the current system, working citizens pay contributions to the Pension Fund, from which pensions are paid. However, according to the People's Deputy, for the stability of this system, economic growth and the number of jobs are necessary. At the same time, part of social payments depends on international financial assistance. “What needs to be done today? Indeed, we have the lowest pension in Europe,” Leonov noted.
The new savings system provides that by the age of 55, each citizen will receive a personal account to which pension contributions will be credited. After three years, these funds can be used for their intended purpose. In addition, the savings can be transferred to heirs. “This account can be inherited,” the People’s Deputy concluded.
We remind you that we previously wrote that the euro exchange rate has risen to its maximum values.