The Cabinet of Ministers has announced the start of the second stage of pension reform in 2021, namely the transition to a form of funded retirement.
This is reported by the NPF with reference to vesti-ua.net.
Experts say such a system could hit Ukrainians in their pockets and shocking details have been reported.
According to economist Igor Garbaruk, in the state in which Ukraine is today, such a reform will only harm. To implement such a system, there must be a strong economy in which people could systematically receive a salary and deduct a certain percentage from it into a savings account.
“But today, 60 to 80% of the Ukrainian population is below the poverty line or lives in whole families for a single salary and has nothing to save”, He stressed.
Garbaruk’s colleague Yuriy Gavrilechko in turn notes that the country’s pension system is not functioning properly and, with the transition to a funded system, it may result in additional taxes for Ukrainian citizens.
He is supported by journalist Vyacheslav Chechilo. According to him, the form of funded retirement will bring nothing good to retirees.
“We are waiting for a scam that overshadows any land fraud … Where can you invest safely in a country where there is not even a stock market? In government bonds before default? The Department of Finance, of course, will be very happy. But retirees are unlikely to rejoice in the end, “ – wrote Chechilo on his Facebook page.
The future will show how this innovation will unfold for ordinary Ukrainians.
Previously, new PFC requirements for retirement by age were reported.