PROSPECTS FOR THE DEVELOPMENT OF FUNDED PENSION PROVISION IN UKRAINE

Abstract

Purpose. The aim of the article is the analysis of the pension system of Ukraine and directions of its reform, clarification of the role of accumulative pension insurance in the system of social protection of the population, as well as study of the prospects for the introduction of a mandatory accumulative pension system in Ukraine. Methods of research. During the research, special economic literature related to the introduction and use of the funded pension system was developed, various economic methods are used, relevant normative and instructive documents in the field of pension provision, statistical data of the Pension Fund of Ukraine are used. Conducting research, the method of absolute and relative, average values and indicators of a number of dynamics is used in assessing the dynamics of the minimum, average pension, wages; the method of analysis using generalized indicators is applied in characterizing the income and expenditure of the Pension Fund of Ukraine. The legislative documents of the Verkhovna Rada of Ukraine was information base of the research, normative and instructive documents of the Cabinet of Ministers of Ukraine, statistical reporting of the Main Department of the Pension Fund of Ukraine. The relevant results of the study were facilitated by the use of special economic literature on the functioning of the national pension system, its reform and the possibilities of using the accumulative pension provision. Findings. The dynamics of the minimum and average levels of pensions in Ukraine over the past five years is analysed, their ratio to the average wage in Ukraine is determined, and the replacement rate is estimated. Attention is drawn to the need to use the State Budget of Ukraine for the needs of the Pension Fund in the payment of pensions to citizens of retirement age. The need to introduce the second level of the domestic pension system to restore the appropriate level of pension provision in Ukraine has been identified. The conditions and prospects for the introduction of mandatory funded pension insurance are analysed. The main bills concerning the practical use of the second level are described; attention is paid to the use of the main financial institutions that can be used at this level. Originality. The substantiation for the introduction of mandatory funded pension provision, which will increase the income of Ukrainian pensioners, has been further developed. The practical application of the second level of the domestic pension system will contribute to its formation as a holistic mechanism. A strong financial base of funded pension programs can be used for the development of the national economy. Practical value. The obtained results of the study provide a basis for further study of the theoretical foundations and development of practical recommendations for the introduction of mandatory funded pension provision and the development of the domestic pension system. Key words: accumulative pension provision, pension treasury, pension legislation, pension assets, average pension, Pension Fund of Ukraine, pension contributions.