A solidarity pension system is the only guarantee for pension payment amid any economic conditions. This is demonstrated by practical experience of functioning of the pension system in Ukraine, the Minister of Social Policy Andrii Reva said.
"The solidarity pension system has passed through all challenges and proved that even in the worst times when there was a very difficult economic situation, the only source of pension payments was a solidarity system. Therefore, it should be taken into account that the solidarity level is an insurance system that will provide a guarantee of payment of pensions under any circumstances," the Minister noted.
He also highlighted the important role of the mandatory accumulation level of the pension system as an additional resource to increase retirement benefits in the future.
"The accumulative pension scheme is effective when people have an additional resource and the opportunity to use part of the revenues not only for consumption but also for the future. If people have nothing to save, then they will not accumulate anything. Thus when personal incomes will grow significantly, and this will happen in the near future, and the opportunity to accumulate a part of the resource will be possible through state guarantees for the preservation of these funds, then people, after a certain number of years, will receive an additional pension from their savings", Andrii Reva explained.
At the same time, according to the Minister, the main challenge for both levels of the pension system remains a shadow economy because contributions to both levels of the pension system are calculated from official incomes of citizens.