FINANCIAL AND ECONOMIC REGULATION

BASHKO Vasyl ¹

¹State Educational and Research Organization “Academy of Financial Management”

Ways to achieve balance of the pension system in Ukraine

The Pension Fund of Ukraine sustainability and key factors affecting it are examined in the article. It is revealed that the main factor of pension system imbalances in perspective will be a sharp decline in the ratio between the working age population and elderly population. There are considered hypothetical ways of countering these negative processes, including broadening the tax base, limitation of special pensions, increasing the rate of contribution and the retirement age. It is established that in the long term period pension system imbalances will grow if the retirement age remains the same. Conclusions are formulated based on comparison of population in employment and retirement age as well as the ratio between expected period of employment and life expectancy at retirement in terms of raised retirement age in Ukraine and without it. The forecast of pension payments and increase in public debt is conducted till 2030.

Keywords: pension system, retirement age, deficit, deduction rate, replacement rate, public debt.

JEL: H55, H61, H63, J26.

BASHKO V. . Ways to achieve balance of the pension system in Ukraine / V. BASHKO // Фінанси України. - 2015. - № 6. - C. 97-107.