The Government’s task is to create conditions which enable Ukrainians to be confident in the future and to see the prospects for personal development and a dignified old age. Prime Minister Denys Shmyhal dwelled on that in his introductory speech during a Government sitting on June 2. According to the PM, today thousands of young people in Ukraine are investing in pension funds to secure decent retirement payments.
The Head of Government placed an emphasis on the Government’s active work on the introduction of the second level of the pension system. During the Government meeting the establishment of a working group on the introduction of mandatory funded pension provision and the development of private pension provision was approved.
"The project to introduce a cumulative pension system currently stipulates for a reduction in taxes paid by Ukrainians to the budget. Taxes will be directed to personal pension accounts, where they will be invested and multiplied. There will also be no additional charges for the business. Thus, the cumulative funded pension system will be put into practice at the expense of those taxes that people and businesses already pay. After retirement, a person will receive own funds, and this will be a good additional income to the state solidarity pension," Denys Shmyhal underscored.
The Head of Government noted that in order to kick off the second level of the pension system, it is essential to create a quality infrastructure.
"We need to correctly identify the tools where a person can invest. Everything must be reliable and predictable, " the Prime Minister stressed.
An important element of the second level of the pension system, according to Denys Shmyhal, will be the appearance of "long-lasting money" in Ukraine. The PM added that a much larger investment resource will appear in the country which will also contribute to the emergence of a quality stock market and economic development in general.