Problems with pensions in Ukraine
There are problems in Ukraine with the mechanisms for calculating and indexing pensions, which leads to a reduction in the real payments to pensioners that do not reach the guaranteed 40% of the salary. According to the head of the Verkhovna Rada Committee on Finance, Danylo Hetmantsev, pensions should be about 40% of the average salary. However, the actual situation shows significant deviations from this norm.
Actual deviations and indexing
Pensions in Ukraine are calculated based on the average salary for the last three years. However, in 2025, for pensioners who applied for payments in the last four years, reduced indexing coefficients were applied:
- 1.0575 for 2021
- 1.0345 for 2023
- 1.023 for 2024
This leads to pensions not meeting the expectations and needs of citizens.
«With such a model, the state misleads citizens at several stages of the formation of pension payments.»
Danylo Hetmantsev
Hetmantsev emphasizes that due to the incorrect indexing mechanism, the actual losses of pensioners in the long term may reach half of their real income. The planned increase in pensions in 2026 with an indexing coefficient of over 11% may partially correct this situation, but it remains unclear whether it can compensate for previous losses.
Problems with pension provision in Ukraine are part of a larger economic crisis that has been ongoing in the country. The lack of adequate mechanisms for calculating and indexing pensions may negatively affect the social welfare of the population, especially those who have already reached retirement age. Reforms in this area are necessary to ensure a decent standard of living for pensioners and to restore trust in the state social protection system.