Reforming the Pension System of Ukraine in the Context of Modern Global Trends

Abstract

Proper social protection for present and future generations of pensioners is possible only if the level of solvency and financial stability of the state pension system in the long term are ensured. The aim of the article is to substantiate the directions for further improving the pension system of Ukraine in the context of modern global trends. The study found that the need for qualitative changes in the current pay-as-you-go pension system is determined by the inability of the PFU to make pension payments at the expense of its own funds, attracting the state as a donor and redistributing a significant amount of public financial resources to finance pension expenditures. Based on the critical analysis of the government’s legislative initiatives for the modernization of the pay-as-you-go pension system and the introduction of a funded system of nationwide pension insurance and the expansion of the non-state pension system, taking into account the experience of most countries in the world, recommendations are developed for a further reforming of the pension system and corresponding transformation of Ukraine’s pension legislation. Prospects for further scientific research in this area are analysis of the world practice in managing non-state pension funds and regulation of their investment activities.

Keywords

• old age provision
• pension reform
• world trends
• modernization of the pay-as-you-go pension system
• personal responsibility
• mandatory pension insurance
• non-state pension provision