Shmygal: There will be no pensions in 15 years

Due to the demographic situation in the future, a worker will have to support two pensioners with his taxes.

The Ukrainian state will not be able to pay pensions to its citizens in 15 years, as the working capacity of the population is decreasing. This was announced on Saturday October 3 by Prime Minister Denys Shmygal during a speech to the students of the Lviv Polytechnic.

“The nation is aging. There is a problem with human capital. Ukraine, as part of old Europe, does not recreate its population. This is common mathematical and economic demography,” said the head of government.

He added that due to the demographic situation in the future, a worker will have to support two pensioners with his taxes, which is almost impossible.

In this sense, according to Shmygal, it is necessary to introduce a funded pension system in Ukraine as a complement to the existing one. We intend to introduce other types of pension contributions next year.

“Each of us should think about our pension from an early age,” warned the prime minister.

As previously reported, the Ministry of Social Policy proposed to increase the minimum pension from 2,100 to 2,400 hryvnias from January 1, 2021, and to carry out an annual indexation of pensions from March 1.

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