In Ukraine, they can launch a funded pension system before January 1, 2021
Prime Minister Denis Shmygal considers it completely realistic to introduce the funded pension system by January 1, 2021.
Shmygal said this in an interview with Interfax-Ukraine.
“For us, it is inevitable to switch to a retirement system with savings funds … We are now preparing invoices. I don’t want to sound too optimistic, but before January 1, 2021, it is entirely realistic to present it, ”he said.
According to the Prime Minister, such a reform has been worked out and the government knows how to launch it.
“This option is under discussion: we allocate 2% of the current ERU to savings without increasing the burden neither for the company nor for the person, and we take an additional 2% for the income tax of individuals. This 4% allows you to obtain 1 million UAH at today’s prices during your retirement. There will be three options. Take it immediately, that is, when you reach retirement age, I have received the full amount and do what you want. The second option – installments over 5 to 10 years. The third option is lifetime maintenance, there will also be a certain fixed amount, “said the Prime Minister.
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He added that “a certain pension deposit” is obtained, when a part is provided by the State, the second part can be made by a person himself.
According to the materials: ukrinform.ru