The funded pension system needs to be implemented as soon as possible.
Vitalii Lomakovych, the founder and Chairman of the board of Growford, wrote about this on his Facebook page.
“I am grateful to Minister of Finance Serhii Marchenko for raising an important issue for society and the country. To talk about pension reform is for some reason a taboo among most government officials. Nevertheless, this does not solve the problem. We need a quality reform so that Ukrainians are confident in their future and are not afraid to run out of money for bread. There is not so much time. The rollout has already taken 22 years. But there has been no action, only discrediting pension reform in general. People fear the funded pension system like the plague. Because they do not understand that the solidary pension system in its current form is doomed,” – he wrote.
Vitalii Lomakovych explains that the number of working people is equal to the number of pensioners: 10 million people vs. 11 million. In addition, the UN predicts that by 2050 in Ukraine the share of people aged 60 and older may increase to 32%. Very soon, we will face the fact that the solidarity system will have only the function of paying the minimum guaranteed age benefit. I am not sure anyone would like that prospect.
“The only way to save the country from “poor old age” is a funded pension system, which should be introduced immediately. It should be noted that we do not refuse a solidarity pension. Citizens will be able to receive two pensions. Not a bad option, is it? But a necessary condition for a successful pension reform is the trust of citizens in the actions of the government and confidence in maintaining and increasing their savings. The role of the National Bank of Ukraine is important in building public confidence in the funded system. The NBU must ensure the stability of the national currency (as required by the Constitution of Ukraine) and pursue a projected monetary policy. The government should soon present a clear vision plan for pension reform and involve leading experts in the discussion. Since in a period of unstable economic situation, time is playing against us,” – said the chairman of the board of the Growford Institute.