If war ends next year, funded pension system can be launched from 2024 – minister Zholnovych
Minister of Social Policy of Ukraine Oksana Zholnovych believes that if the war ends next year, then from 2024 we can start launching a funded pension system.
"A funded pension system is necessary. But I will not portray everything in a very rosy light either, because not the entire scope of the necessary tasks depends on the Ministry of Social Policy. Submitting a bill with a percentage of payments is the easiest thing possible. And the law that is now filed with reductions of personal income tax, I consider it a smart way to start. The second very important task is to save money so that it can be paid when a person reaches retirement age, multiply it at least by the inflation rate," Zholnovych said in an exclusive interview with Interfax-Ukraine.
According to the minister, all this is not an easy task, depending on the economy, the development of stock markets, and the availability of sufficient financial instruments so that operators can increase these funds.
"We have questions about all this. The stock market is just starting, investment markets are limited, and it's simply difficult to talk about this during the war," she said.
When asked when we can expect the launch of the funded pension system in Ukraine, the minister said that it all depends on how long the war drags on.
"If, God willing, we end it next year, then we can start launching the funded system as early as 2024. As this system is now described, it does not create a large funding for a person, but allows you to gradually launch all the processes of earning money. It will be like a pilot project, which is not very risky, it will not entail the loss of large funds for a person, and where the State Savings Bank will be the first operator, and we will be able to guarantee their safety more," Zholnovych said.
According to her, such a system can start very quickly, and just be a tool for restoring the state, and then draw in other tools and spread to private pension funds.
"Now we must prepare at the normative level and align all the legislative monitoring, control, development and investment mechanisms," the minister said.
When asked how long this so-called pilot project would take to fully launch the funded system, Zholnovych said that it would be necessary to look at its results.
"But I would give it two years. A year for testing, analysis, and then I would add other functionality," she said.
As reported, Zholnovych considers preparation for the introduction of the funded pension system one of the priorities for the post of Minister of Social Policy.