Pension Reform: Lawyer Explained How Pensions Will Be Calculated Under the New Points System.

Lawyer Dmytro Korsun analyzed the innovations in the pension reform proposed by the government starting in 2025. The main changes include the 'pension points' system and a new formula for calculating payments.

According to the proposed model, the pension will consist of a basic part (30% of the minimum wage) and an insurance part, which will depend on the accumulated pension points.

The expert illustrated the calculation for a hypothetical retiree with 35 years of experience and an average salary. Under the new system, this person would accumulate 4200 points, which at a value of 1.02 hryvnias per point means an insurance part of 4284 hryvnias and a total pension of 6132 hryvnias.

Potential Advantages and Risks

'In practice, we see that even current formulas are often applied incorrectly. People are not sure whether all work experience is counted and if the salary coefficient is correct. Thus, it is extremely important to verify the calculations and documents now, not to wait for the new system,' advises lawyer Dmytro Korsun.

Currently, the pension reform is at the stage of legislative changes. Experts recommend that citizens monitor updates and check the accuracy of work experience and salary accounting, which affect future pension calculations.

The pension reform proposed by the government starting in 2025 involves the introduction of a 'pension points' system and a new formula for calculating payments. This model will enhance transparency and accountability in pension payments, but experts advise citizens to carefully check calculations and documents even before the new system is introduced to avoid possible misunderstandings in the future.