In 2025, Ukraine plans to launch pension reform, which will make payments more fair, given the experience and amount of contributions. The main attention will be focused on supporting vulnerable groups and reducing special pensions, which will allow you to direct more resources to the general system.

Minister of Social Policy Oksana Zholnovich spoke about this at the press briefing “The Year of Changes and Achievements in Social Protection”. She noted that the main goal of the reform is to make pensions more targeted, taking into account two key criteria:.

Thus, the pension system will become more transparent and fair, because the situation where special pensioners receive tens of thousands of hryvnia will end, while ordinary citizens are forced to survive on minimal payments. Now pensions for most Ukrainians (except for special categories, such as judges or prosecutors) are calculated by the formula:.

However, this formula has disadvantages:.

Two components will appear in the new formula:.

For example, if a person has 35 years of experience and received an average salary, then according to the new formula his pension will be 6140 UAH (4292 UAH insurance pension + 1848 UAH basic pension). According to the old formula, this amount would be only 4745 UAH.

However, the implementation of the new formula depends on the financial capabilities of the state. As noted in the explanatory note to the reform project, the corrective coefficient of financial stability was introduced for lack of funds, actually equating the new formula to the old. Every year the government will review how much money can be allocated for pensions and adjust payments based on this.

One of the key elements of the reform will be the reduction of numerous special pensions received by certain categories of citizens (judges, prosecutors, security forces). Now, according to Zholnovich, these funds will be aimed at supporting the pensioners who are on the common pension system. The authorities also plan to introduce a mechanism of targeted support for the most vulnerable groups of the population.

This will allow consolidating different social assistance programs and reducing gaps between categories of pensioners.

As noted in the memorandum with the IMF, the reform should be launched until July 2025. It also involves a decrease in legal risks arising due to the complex structure of the pension system, and the creation of a more stable model. While the reform project is at the approval stage, it has not yet been considered by the government and the Verkhovna Rada.