Peculiarities of Development of Non-State Pension Funds in Ukraine at the Current Stage of Pension Reform

Non-state pension provision forms the third level of the national pension system and represents funded pension programs on a voluntary basis. Since the state pension system does not fully satisfy the needs of citizens of retirement age, non-state pension provision plays an important role for the growth of incomes of Ukrainian pensioners. However, today non-state pension provision is not quite popular among the population. The purpose of the article is to assess the state of non-state pension funds in Ukraine, to reveal their features and development priorities at the current stage of the pension reform. The composition of financial institutions involved in the implementation of private pension provision was determined, and the relationship between them was disclosed. The peculiarities of the activities and responsibilities of private pension funds were highlighted. The analysis of the main performance indicators of non-state pension funds was carried out. It was revealed that the non-state pension system failed to attract a large number of participants. Most of the existing participants are workers whose pension plans are financed by their employers, and they usually do not pay much attention to their own pension accounts or to the performance of the non-state pension fund. Employers pay more than 90 % of the total accumulated pension contributions, and the rest are paid by employees and private entrepreneurs. The financial instruments available for investment in Ukraine severely limit the possibility of obtaining investment income and risk diversification. As a result, non-state pension funds invest mainly in two types of financial instruments: government securities and bank deposits. It was determined that an important direction in the development of non-state pension provision is to facilitate the involvement of more insurance companies and banks in this area. It is necessary to create favorable legislative and tax conditions for their cooperation within the framework of the non-state pension system.