In Ukraine, there is the possibility to significantly increase pension payments by delaying retirement beyond the established age. This mechanism allows adding from 6% to 54% to the pension depending on the deferment period. Let’s take a closer look at how this system works and who can benefit from this increase.
How Pension Deferral Works
Ukrainian pension legislation encourages citizens to retire later than the standard retirement age. Deferral allows every Ukrainian to choose the time of retirement, taking into account their life circumstances. The main advantage of retiring later is that pension payments increase by 6% for each year of postponement up to five years, or by 0.5% per month.
Calculation for Deferring up to 60 Months
If a person decides to postpone retirement for up to 60 months (five years), the size of their pension will increase by 0.5% for each month of deferment. This means that for each full year, the pension increases by 6%. For example, with a two-year deferral, the payment will increase by 12%.
Benefits for Those Deferring Retirement for Over 5 Years
For those who choose to delay retirement for a longer period – over 60 months, there is an even greater incentive. For each month of deferral beyond this period, an additional 0.75% is added to the pension. Therefore, if retirement is delayed for six years, the pension will increase by a significant 54%. This is a substantial percentage that can provide greater financial security in retirement.
Who Can Benefit from Pension Deferral
Postponing retirement is available for all Ukrainians who have reached retirement age. The Pension Fund of Ukraine allows individuals to choose the timing of their retirement, giving people freedom in planning their financial future. Those who are still working or have other sources of income often choose to delay the start of their pension in order to significantly increase its amount in the future.
Why it can be advantageous
In conditions of economic instability in Ukraine, pension payments often remain the only stable income for many citizens. Postponing retirement can be a beneficial decision for those who want to ensure a higher standard of living during retirement. Through this mechanism, individuals can receive higher payments, which will later help cover more needs in old age.
Important aspects for retirees
However, before making a decision to postpone retirement, several factors should be considered:
- Pension supplements are proportional to the delay time and are provided only for full months of work after reaching retirement age.
- Additional percentages are accrued only for insurance periods, i.e. the time when a person is officially employed and contributions are made to the Pension Fund.
How to plan your retirement
In order to receive maximum payments, retirees can carefully consider the optimal time to retire based on their financial capabilities and circumstances. It is important to understand that each additional month of work increases payments and helps better prepare for old age.
Conclusion: In Ukraine, everyone has the opportunity to influence the size of their pension by delaying its commencement. This step allows individuals to secure a more stable financial future and can be beneficial for those who seek better conditions in retirement.
