Ukraine's Ministry of Social Policy plans to implement an accumulative pension system by 2026, according to Minister Oksana Zholnovych.

"We have developed a draft law that allows us to move further away from the subsistence minimum format in pension calculations (pay-as-you-go (PAYG) system) and tie it to the average salary in Ukraine and the average lifetime salary earned by an individual," Zholnovych stated during the government's Q&A session in the Verkhovna Rada on Friday, as per the meeting transcript.

She explained that the target model would ensure that each person within the PAYG system receives 40% of the earnings they accrued throughout their working life.

"This is a European requirement and standard. Together with the funded pension system, which we plan to introduce in 2026, and the package of bills already prepared, we aim to guarantee a replacement rate of no less than 60% for pensioners," Zholnovych concluded.

As reported, First Deputy Minister of Social Policy Daria Marchak stated that a reform of the PAYG pension system has been developed and is being discussed with Ukraine's Ministry of Finance.

In September 2023, Prime Minister Denys Shmyhal announced that the PAYG pension system would be reformed in 2024.

In October 2023, Zholnovych stated that the government would prepare the necessary infrastructure for the funded pension system by 2025, but if the war continues, it would only be launched after victory.