The Effect of Pension Fund's Deficiency on the Economic Development of Ukraine

The article reveals that budgetary financial resources play an important role in ensuring the economic development of the country and enhancing its defense capability. It is shown that the constant growth of contributions from the state budget to the Pension Fund of Ukraine to cover its deficit negatively affects the development of the national economy. It was determined that the deficit of the Pension Fund of Ukraine is due to the use of an outdated solidary pension system, while the economically developed countries of the world successfully use the funded system. It is substantiated that the accumulative system allows efficient use of funds accumulated in the pension fund to support the business. It has been proposed, without reference to the unfavorable socio-economic situation, to start introducing the accumulative pension system in Ukraine.