Problems of Pension Reform in Ukraine

The reasons for the ineffectiveness of pension reform, namely injustice at the payment of contributions for the formation of future pension provision, have been defined in the article. The purpose of the article is to analyze the main tendencies in the pension system of Ukraine and identify potential directions for solving problems that arose during the pension reform process. The analysis of tendencies of development of the pension system in Ukraine and dynamics and amounts of pension payments by regions of the country have been analyzed. The features of the proposed changes in the pension system of Ukraine have been singled out and the main reasons of its inefficiency have been substantiated. The article determines that the existing demographic situation in Ukraine significantly complicates the development and implementation of pension reform. Several variants of the solution of the problem have been suggested: improvement of the demographic situation and increase of the birth rate; the growth of the able-bodied population by means of reimaggration and growth of foreign migrants; growth of able-bodied age. The article substantiates that it is impossible to overcome the deficit of the Pension Fund, reducing pensions, since the vast majority of pensioners receive the minimum amount. So, it is necessary to increase revenues. And the first task here is the development of the economy and the creation of new jobs, hence more people will work and pay the SSC. There is no alternative to raising the retirement age: given demographic trends, this is the only reliable way to reduce the burden on the pension system in the medium to long term. The demographic load, that is, the number of children and pensioners per worker - is not the only factor affecting the financial capacity, the sustainability of the pension system. International experience shows that in countries with higher demographic load than in Ukraine, it is still possible to successfully solve the problems of filling pension funds due to the aging of the population. Further research will be aimed at developing recommendations for the application of the policy on improving the efficiency of the pension reform in Ukraine.