Victor Baloha: “PAYG pension system has exhausted itself”

 "Dear friends, have you ever wondered who will be paying your pension if those, who are now under 40, are emigrating from Ukraine?" – deputy Victor Baloha asks on his page:

Today, there is one pensioner per one working citizen. And what will happen when this proportion is 3 to 1? What do you think will the average pension in Ukraine be then – $35?

The government also understand that, but in their own way. Because in their understanding, reform is raising the retirement age to 63 years, while men on average live just 66". 

Having the majority in the parliament, the government failed to implement pension reform in 3 years.

"And what had to be done? The same, that our neighbors Hungarians, Poles and Slovaks did when joining the EU. Back in the 1990s they realized that the PAYG system had exhausted itself. In one way or another, each of these countries introduced a 3-tiered pension system, which includes contributions to the state pension fund, contributions to private funds by the employer, and voluntary contributions by citizens themselves.

Such contributions to the pension fund should be exempt from taxation, and the activities of the funds should be strictly regulated. And they do not need to go far – the president has experienced counselors from Poland and Slovakia who can simply adapt their models to our needs. In my opinion, it is for such projects that Balcerowicz and Miklos were invited to Ukraine" – Victor Baloha sums up.