Ukraine's pension reform: new savings and pension accrual rules set to take effect in 2025.

Starting in 2025, Ukraine plans to implement a pension reform that will include both a mandatory accumulation system and a point-based model for pension calculations. As reported by senior researcher at the Institute of Demography and Social Studies, Lydia Tkachenko, the reform of the pension system will become a significant topic for the country in the long term.

In Ukraine, there are approximately 10 million pensioners, and despite relatively low average pensions (around 5,000 hryvnias), pension expenditures remain among the largest in the state budget, second only to expenditures on other social needs.

Tkachenko noted that the draft state budget for the upcoming year does not include detailed provisions for the reform; however, there is a possibility of introducing a mandatory accumulation system. This would mean that deductions from citizens' salaries would not go to the Pension Fund but would be directed to individual accounts in a new State Accumulation Pension Fund that is to be established by the Cabinet of Ministers.

This system could be beneficial for the economy, as the funds entering the fund could be used to purchase domestic government bonds, ensuring a steady demand for these bonds.

In addition, the project may include the implementation of a point-based system for calculating pensions. Under this model, contributions made by citizens to the Pension Fund will be converted into points.

The number of points will depend on the ratio of a person's salary to the average salary in the country. Annually, the number of points will be recalculated in accordance with changes in the average wage, allowing pension payments to remain relevant according to current standards.

Let us remind you that "Ukrenergo" introduces electricity supply restrictions for enterprises. On November 13, "Ukrenergo" implemented temporary power restrictions for businesses and industrial consumers due to a reduction in maneuverable generation and a decrease in electricity imports.