When will Ukraine implement a funded pension system? The Ministry of Social Policy provides an answer.

The accumulative pension system in Ukraine may be introduced as early as 2026. This was announced by the Minister of Social Policy, Oksana Zholnovich, during a press conference.

According to her, the draft law on the accumulative pension system has been developed by the Cabinet of Ministers.

"We have already completed the first round of coordination with all central executive authorities. We are currently finalizing the concerns that were raised, reconciling the final figures with the Ministry of Finance, and I am convinced that in the coming months it will be submitted to the Verkhovna Rada so that we can establish the entire legislative framework this year and begin technical preparations," she stated.

Zholnovich noted that the ministry's plan requires the development of an effective administration system for the introduction of the accumulative pension system.

"Each of us, when directing a certain resource, has a portion that goes towards growth, but a certain percentage always goes to administration, meaning salaries for specialists, oversight, and similar expenses. To reduce this administration, we need to create high-quality IT services," the minister emphasized.

"Therefore, this year we are developing legislation, formulating a specific IT system, and working on the concept of a cost-effective and efficient state accumulative fund, and, God willing, we can start the first accumulations from 2026," Zholnovich added.

Pension Reform in Ukraine - Latest News

The Ukrainian government is preparing a pension reform. The Ministry of Social Policy has prepared a corresponding draft law, which has not yet been submitted for parliamentary consideration. The main goal of the potential pension innovations, according to officials, is to increase fairness in the current solidarity pension system. To achieve this, the draft law introduces concepts such as basic and insurance pensions, as well as pension points.

The Ukrainian authorities, in a letter of intent to the IMF leadership, outlined plans for the future pension reform. It stipulates that indexation will become the only mechanism for increasing pensions. According to the Memorandum with the IMF, the Cabinet plans to submit a draft law to the Verkhovna Rada by the end of March 2025, which will prohibit any changes to the pension system outside of pension legislation.