From 1902 to 7130 hryvnias: how pensions will be calculated under the new system.

New Point-Based Pension System: Details

The Ministry of Social Policy revealed details of the new point-based pension system. According to calculations, an employee with a salary of 30 thousand hryvnias could receive a pension of 7130 hryvnias.

According to 'Economic Truth', the new system provides for monthly pension points accrual depending on the salary amount. With the average salary in the country, an employee will receive 10 points per month.

According to the Pension Fund, in September 2024, the average salary was 18020.86 hryvnias. An employee with a salary of 30 thousand hryvnias will receive 16.64 points per month, as their income exceeds the average indicator by 1.664 times.

The minimum requirements for obtaining an age pension are 1440 points and 35 years of work experience. The benchmark value is 4200 points, which accumulate by receiving the average salary for 35 years.

The cost of a pension point will be calculated annually. In 2024, one point would cost approximately 1.02 hryvnias. A salary of 30 thousand hryvnias over 35 years will allow accumulating about 6990 points, providing a pension of 7130 hryvnias.

An employee earning the minimum wage (8000 hryvnias) will accumulate 4.44 points per month. As a result, after 35 years of work, they will be entitled to a pension of about 1902 hryvnias.

Without going into details, the pension system model has both its supporters and critics. However, it is important to consider how the new system will affect the lives of citizens of Ukraine.