Low Pension Savings in Ukraine: Ahead of Reform?
Ukraine took the penultimate place in the ranking of pension savings among the countries of the world. Despite the work of non-state pension funds in the country, people are reluctant to use their services. There are several quite simple reasons for this. But the low place of Ukraine in the rating can accelerate the introduction of a mandatory funded pension.
Poverty and Mistrust
According to the Organization for Economic Cooperation and Development (OECD), Ukraine is ranked second to last in terms of pension savings out of 89 countries. In 2020, they amounted to 0.1% of the country’s GDP. Only Pakistan has a worse result. On the other hand, many African countries, in particular Uganda, Zimbabwe and Tanzania, have outstripped Ukraine in this indicator. The OECD calculated that the volume of pension savings in Ukraine is equal to 123 million dollars or 3.5 billion hryvnia.
“I think this figure is quite large for Ukraine,” says economic expert Vsevolod Stepanyuk. – This is a figure that refers not to state pensions, but to private pension funds. Considering that few people use private pension funds, this figure is quite large. I don’t know people who would receive pensions from private pension funds. ”
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