Denys Uliutin: Ukraine and international partners seek financial instrument to launch a funded pension system

The state is working to offer people an effective and secure financial instrument to protect pension savings from inflation. This was stated by Minister of Social Policy, Family and Unity Denys Uliutin during the presentation of the Draft Government Action Plan.

“Anyone contributing to a funded pension system must be confident that their savings will be preserved and guarantee a pension. Previous options discussed do not address this issue. When we take resources from public finances and channel them into domestic government bonds through a funded system, we create a deferred problem,” emphasised Denys Uliutin.

According to him, while Ukraine is still developing its domestic financial market, finding an instrument to protect savings internally is challenging. Work is already underway, including with international partners, to identify a financial instrument before the domestic financial market is fully established.

“The lack of a sustainable pension model undermines people’s trust. Today, we have a deficit-ridden system, low pensions, and a complex ‘mosaic’ of legislation. We propose several key changes, including a funded pension system. The success of such an instrument depends on trust in it,” the Minister added.

Additionally, the Ministry is developing a new Social Code to consolidate dozens of laws and bylaws into a single, clear system.