THE REALITIES OF PENSION PROVISION FOR UKRAINIANS

Abstract

Pension provision is one of the key elements of a country’s social security system and an important tool for maintaining the well-being of elderly citizens. In the context of economic instability, martial law, high rates of labor migration, and demographic aging of the population, the issue of the financial sustainability of Ukraine’s pension system has become particularly acute. The growing deficit of the Pension Fund, the low level of pension payments, and the dependence on budget subsidies create the need for a thorough analysis and the search for effective reform mechanisms. The purpose of the study was to determine the current state of pension provision in Ukraine, identify its key problems, and develop proposals to enhance the system’s financial sustainability and social fairness. The research applied statistical analysis methods to assess the dynamics of pension payments and Pension Fund revenues; comparative analysis to study the experience of pension reforms in EU countries; and a systems approach to comprehensively evaluate the effectiveness of the current three-tier pension model. The analysis revealed that the dominance of the pay-as-you-go (solidary) system amid demographic decline creates significant financial pressure. The funded pillar is still in the implementation phase, while private pension funds remain underdeveloped. The main problems identified include low levels of formal employment, a large shadow economy, unequal pension distribution, and a limited range of financial instruments for long-term savings. Proposed reform measures include stimulating formal employment, introducing a mandatory funded pension system, promoting financial literacy, and supporting private pension initiatives. The current realities of pension provision in Ukraine demonstrate the need for systemic reforms aimed at diversifying sources of financing, balancing the solidary and funded components, and adapting successful international practices to national conditions.