As of July 2026, there were nearly 10 million pensioners in Ukraine, with an average monthly pension of 7,273 UAH. At the same time, 2.4 million people, or 24 per cent, received only 3,000–4,000 UAH — around 115 UAH per day.
The causes of the crisis had been building up for years: an ageing population, low wages, undeclared employment, labour migration and a deficit in the Pension Fund. After 2022, these were compounded by massive demographic losses and the forced departure of millions of Ukrainians. As a result, contributions from current workers are increasingly insufficient to fund pension payments.
In Ukraine, a pension replaces only 20–25 per cent of previous earnings, whilst the average for mandatory schemes in OECD countries is 63 per cent. However, a direct comparison of the amounts is not entirely accurate: in developed countries, pension income is usually drawn from several sources — a basic state pension, occupational or mandatory savings schemes, and voluntary savings.
Canada, the USA, Australia, the Netherlands, Denmark and Iceland use different models, but they share a common principle: the state guarantees basic protection, whilst a portion of future income is saved and invested throughout a person’s working life.
At the same time, a funded pension system is not a ‘magic bullet’. Without formal employment, sufficient contributions, well-developed financial instruments and trust in the rules, substantial pension capital will not accumulate. The Czech Republic was forced to close its voluntary second-pillar scheme due to participation by only 1.2 per cent of the working-age population, whilst Argentina’s experience has highlighted the risk of the state seizing savings to cover budgetary shortfalls.
A multi-tiered model is the best option for Ukraine: the pay-as-you-go system must remain the foundation of social security, but it needs to be supplemented by occupational, compulsory and voluntary savings schemes. The key condition is that the funds must be genuinely invested, protected and belong to future pensioners.
❗️The publication by the Center for Social and Economic Research (CASE Ukraine) was made with the support of the Civil Society Home of ISAR Ednannia as a part of the project «Strong Civil Society of Ukraine – a driver towards reforms and democracy,» funded by Norway and Sweden. The contents of this publication are the sole responsibility of the Center for Social and Economic Research (CASE Ukraine) and can in no way be taken to reflect the views of the Government of Norway, Government of Sweden and ISAR Ednannia.