Updated pension model in Ukraine to include basic payments, extra benefits for combat experience
Ukraine’s updated pension model will include a basic payment for older citizens, the transformation of special pensions into professional ones, revised approaches to the funded system, and additional payments for combat experience, the Ministry of Social Policy, Family and Unity has announced.
"The ministry, together with international partners, is currently working on legislation that will define the renewed pension model in Ukraine," the ministry said in a statement.
According to the announcement, the new model will introduce a guaranteed basic payment for citizens aged 65 and older, or for those who have a full insurance record by age 60. This payment will serve as a social minimum, which, in the ministry’s view, will ensure a decent standard of living in old age and protect vulnerable citizens from poverty.
The Ministry of Social Policy is also proposing a single base formula under which pension size will depend on contributions paid.
"This means the Pension Fund will remain solvent, while citizens’ contributions will directly determine the size of their pensions, making the system transparent and fair," the ministry said.
In addition, the plan provides for a solidarity pension to be distributed under uniform rules for everyone and the creation of professional pensions for specific categories of workers funded through additional contributions.
At the same time, a model for voluntary funded pensions with government incentives and guarantees to protect pension capital is being developed. This system will complement the solidarity model and promote the accumulation of personal savings for retirement.
"Dignified support for veterans. The goal is to ensure decent support for veterans who are defending Ukraine in the war with Russia. The plan provides for an additional pension payment for combat experience, with clearly defined and transparent criteria for calculating these payments. This will guarantee fair and understandable compensation for veterans in recognition of their service and contribution to the country’s defense," the ministry added.
As reported earlier, in September 2023 then–Prime Minister Denys Shmyhal announced that a reform of the solidarity pension system would be carried out in 2024.
In October 2023, then–Minister of Social Policy Oksana Zholnovych said the government would prepare the entire infrastructure for the funded pension system by 2025, but if the war continued, its launch would only be possible after victory.
In September 2024, First Deputy Minister of Social Policy Daria Marchak (now Deputy Minister of Economy) stated that the reform of the solidarity pension system had been developed. Zholnovych, in turn, said the ministry planned to introduce the funded pension system in 2026 and expected to launch the new solidarity system in July 2025.
On January 3, 2025, Shmyhal said that in 2025 Ukraine planned to introduce basic social assistance and adopt legislation on the funded pension system.
On January 27, 2025, Zholnovych announced that the first accumulations within the funded pension system could begin in 2026.
On August 18, 2025, Minister of Social Policy, Family and Unity Denys Uliutin said that work was underway with international partners on a temporary financial instrument to ensure that pension savings are preserved and protected from inflationary pressures.
On October 17, 2025, Ulyutin said that introducing a mandatory funded pension system in Ukraine was still premature, as the financial market was not yet ready to provide effective investment of such funds.