Citizens will start receiving funded pension in 25 years - expert

28 May 2015 10:55  9100018 0101031
Citizens will start receiving funded pension in 25 years - expert

The improvement in the pension system after the adoption of a package of laws necessary for reforms in this area cannot be expected immidiately.

This opinion was expressed by the director of the Institute of Demography and Social Studies named after MV Ptukha of the NAS of Ukraine Ella Libanova at the meeting of the "round table," the "Ukrinform" reported.

"Do not promise a bright future immediately after the adoption of the law. Citizens will start receiving funded pensions in 25 years. Those will be the first ones, since the retirement age here is 60, and 60 minus 35 gives 25" - Libanova said.

She stressed that the transition period, when incomes and, respectively, the Pension Fund budget will be reducing, would be about twice as long.

"Because this period begins when the first worker starts paying part of contributions not to the PAYG fund but to the saving fund. And it ends when the last person receiving pension only from the PAYG system dies. In any case, it is no less than 50 years, and we must understand that," - the expert said.

She said that for the next 50 years the state will have to compensate the Pension Fund of Ukraine for the costs of the transition period.

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