Under the guise of announcements of increases in Ukraine, they decided to reduce the size of the average pension
Pensioners will practically not feel the increase in pensions that Ukrainian officials are now talking about, since payments to pensioners will be increased by very small amounts.
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President of the Ukrainian Economic Center Alexander Okhrimenko stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“Now they are advertising an increase in pensions, and they plan to increase them from October 1, but they are talking about it now. But 52% of pensioners will increase their pension by 200 hryvnia in a year, not in a month, then 9% will increase their pension by 1000 hryvnia. But what is 1000 UAH in Ukraine now? And 200 hryvnia is even a shame to call it an increase in pension. Now it’s not money anymore,” the economist said.
According to him, as a result of the ongoing pension reform, the average pension will be reduced thanks to a new calculation method.
“Please note that the IMF recommends that the minimum pension be no less than 40% of the minimum wage, and the average pension should be no less than 40% of the average wage. Ours somehow pushes all this aside, although according to the logic of things, something like ours cannot exist. Our average salary is already more than 6 thousand, and the average pension is less than 2 thousand.
Therefore, they propose to change the methodology for calculating pensions. Now you take a certificate for a certain period when you worked, how much you received, and a calculation is made - your average salary and a coefficient of 1,35. And they suggest counting 1,1. Why 1,35? That's a lot. And it is proposed to take not the last period, but a long one, because the salary was lower before. Accordingly, this will reduce the average pension,” Okhrimenko emphasized.
He says that in this way the government pursues two goals: without raising the retirement age, to make sure that Ukrainians are not able to retire early, and also to reduce the size of the pension itself as much as possible.
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