The size of pension in Ukraine directly depends on the official salary and insurance work experience. To receive about 20 thousand hryvnias after retirement, significantly higher indicators than the national average are required. This is reported by Radiotrek.
The calculation of pensions is carried out according to an approved formula, which takes into account the average salary in the country, the individual income coefficient, and the insurance experience coefficient. It is the combination of long experience and high official salary that allows for significant payments.
How pension payments are calculated
The calculation formula looks like this:
Pension = average salary in the country × individual salary coefficient × experience coefficient.
At the same time:
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each year of insurance experience adds 1% to the coefficient, that is, 35 years of experience equals a coefficient of 0.35;
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for a pension of 20 thousand UAH, the average salary of a person must be 3.5–4 times higher than the national average.
Pension of 20000 UAH: examples of experience and salaries
The calculations provided show how a high pension is formed:
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35 years of experience and an average salary of 80,500 UAH result in a pension of about 28,175 UAH
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40 years of experience and a salary of 65,700 UAH — approximately 26,220 UAH pension.
The size of payments is also influenced by the payment of the insurance fee on the full amount of income, bonuses for overtime work experience, and the annual indexation of pensions taking inflation into account.
As a reminder, on January 1, 2026, there were changes in the financial sphere in Ukraine, in particular, the minimum wage and pensions increased. The minimum pension increased by 234 hryvnias, but this is not enough to cover the basic needs of the population.