Location Ukraine Ukraine

The head of the IMF mission in Ukraine recommends to reduce the number of Ukrainian pensioners

Ukraine must find a way to reduce the inflow of new pensioners to the pension system and increase revenues to the Pension Fund. This was stated by the head of the IMF mission in Ukraine, Ron van Roden in the column for “Economic truth”.

“This can be achieved in different ways: from further limitations on the possibility of early retirement to increase the effective retirement age,” he said.

As one example, Rodin was called to provide workers with a greater choice of age of retirement depending on the total duration of the career.

“In other words, high pensions will be given to those who pay more in contributions and working longer, and those who pay lower contributions and decided to retire early will receive a lower pension,” he explained.

According to Rodin, it is also necessary to reduce the number of enterprises that pay little or no pay contributions for employees.

“Moreover, it is hard to adjust the simplified taxation regime for small businesses, which creates large opportunities for evasion from payment of single social contribution (single social contribution. – “GORDON”) and taxes,” – said the head of the mission.

In his opinion, the introduction of a funded pension system in addition to the existing system, “what some insist” won’t have much sense “without any prior correction of deficiencies of the current system”.

Roden noted that earlier than in other European countries, the output of Ukrainians in retirement has led to the fact that 30% of the population are pensioners.

“The ratio of payers of pension contributions to pensioners is almost one to one, it is one of the lowest in the world,” he said.

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