Pension security in Ukraine: current trends and directions of development
Authors: Pysarevska Hanna 
Published: June 2024

The article aims to substantiate the directions for reforming and developing the pension system in Ukraine. To achieve the goal, the following research methods were used: methods of analysis and synthesis; abstract logical method; methods of theoretical generalization − formulating definitions of the concepts "pension security", "accumulated pension", etc.; systemic approach − changes and problems in the indicators of the pension system and the development of measures to solve them. As a result of the research, the concept of pension security and the pension system as a process of securement financial support in the form of pensions to a specific category of unemployed citizens, which is aimed at reducing the level of poverty due to its positive impact on such social risks as old age, disability and loss of working capacity, is defined as a set of legal, organizational, financial and economic institutions and norms, as well as professional organizational structures aimed at reducing the level of poverty by positively influencing such social risks as disability and loss of working capacity. The main problems of the pension system of Ukraine at the current stage are substantiated, namely the rapid deterioration of the ratio between the working age and the retirement age due to the drop in the birth rate and the increase in emigration, a permanent deficit of pension funds due to budget imbalance; low level of pensions; underdevelopment of non-state pension security; decrease in the number of payers due to economic instability, military events and other factors; significant lack of public awareness of pension provision; lack of trust in state financial programs and reforms. The main direction of the reform of the pension system has been determined − the introduction of non-state pension security, based on the principles of voluntary choice of the type of pension security and the creation of conditions for non-state pension security at the legislative level, as well as taking into account the risks associated with non-state pension security, such as the risk of investment losses, the instability of the financial market and the possibility of abuse by pension funds. Additional areas of pension development have been identified: increasing the efficiency of the system of tax collection and control over their payment to ensure stable financing of the Pension Fund; support for programs and initiatives aimed at increasing financial literacy among the population, which will contribute to more effective management of personal finances and retirement planning; introducing mechanisms to encourage additional voluntary contributions to the pension fund, such as tax benefits or special support programs for those who actively plan their financial future; development of social programs and services for pensioners aimed at improving their quality of life, access to medical care, cultural and educational events; strengthening mechanisms for controlling the Pension Fund's expenses and effective use of its resources to meet the needs of pensioners as much as possible; open and transparent control over the activities of pension funds and the functioning of the pension system. The scientific novelty of the study consists in substantiating the set of measures for the development and reform of the pension system of Ukraine, which involves the development of non-state pension schemes. The practical significance of the work is that the research results can be used at the level of individual organizations and industries and at the level of individual regions of Ukraine. Prospects for further research are the substantiation of the toolkit for the practical implementation of non-state pension funds.
Keywords: pension security, accumulative pension security, pension system, non-state pension security, corporate pension fund