--- title: "Pension Reform 2026: Hetmantsev Announces Minimum Pension Increase to 7,000 Hryvnias and Launch of Accumulation System" description: "The Head of the Finance Committee of the Verkhovna Rada, Danilo Hetmantsev, announced a pension reform aimed at raising the minimum pension to 7,000 hryvnias. To achieve this, the calculation formula will be changed, an accumulation level will be introduced, and pension funds will be directed towards housing construction." date: 2026-08-19T06:20:00.000Z lang: en url: https://xab.info/en/posts/pension-reform-2026-getmantsev-7000-hryvnias-en tags: [ukraine, pension-reform, economy, getmancev, social-policy] publisher: "XAB.info" --- # Pension Reform 2026: Hetmantsev Announces Minimum Pension Increase to 7,000 Hryvnias and Launch of Accumulation System ![Elderly woman counting coins on a table, symbolizing pension concerns in the context of the 2026 reform](https://xab.info/media/2026/08/19/pension-reform-2026-getmancev-7000-hryvnias/pension-reform-2026-getmancev-7000-hryvnias-1.webp) ## 🎯 Key Points - The minimum pension is planned to be raised to 6–7 thousand hryvnias. - An accumulation level with state co-financing is being introduced. - Pension funds will be invested in the construction of a million apartments. - Abolition of "clan" privileges and special pensions to equalize the system. On August 19, 2026, Ukrainian society is discussing one of the most significant social reforms of the last decade. Danilo Hetmantsev, Head of the Finance Committee of the Verkhovna Rada, outlined the government's ambitious plans to restructure the pension system in an interview with RBC-Ukraine. The key goal, which he identified as "task number one" for the cabinet and a direct directive from the President, is to raise the minimum pension to the level of 6–7 thousand hryvnias. To implement this plan, it is proposed to radically change the calculation formula for benefits and introduce a full-fledged accumulation level. ### Changing the Formula and Abolishing "Clan" Privileges Hetmantsev critically assessed attempts to reform the pension system over the last 15 years, calling them "half-hearted." According to him, the current calculation formula contains mechanisms due to which citizens lose up to 20% of their entitled amount, while indexation is tied to the outdated 2017 base, making payments inadequate to current economic realities. The new model assumes a strict link between the pension amount and the growth of the average wage in the country. This will allow achieving a replacement rate of at least 40%, meaning the pension will constitute a significant portion of a person's former income. The politician also warned that the reform would be unpopular for certain groups. "It is unpopular only for those who will lose special pensions and 'clan' privileges," the deputy emphasized. This indicates that within the framework of the reform, a review of preferential payments for civil servants and other categories with special status is planned, in favor of equalizing conditions for all citizens. ### Mechanics of the Accumulation Level and Protection Against Inflation The second pillar of the reform is the introduction of an accumulation level. Hetmantsev proposed a specific co-financing model: if an employee transfers 1% of their salary to an accumulation account, the state adds another 1% (total 2%); if the employee pays 2%, the state doubles this amount (total 4%). Such a mechanism is designed to encourage citizens to plan their future in the long term. Special attention in the draft law is paid to the protection of savings. Non-state pension funds (NPFs) must receive clear guarantees of protection against inflation so that citizens' savings do not depreciate over time. The draft law regulating these issues has already been prepared and is at the discussion stage. This is critically important for restoring public trust in financial institutions after crisis periods. ### Investing "Long Money" in Housing Construction One of Hetmantsev's most innovative proposals was the use of pension fund funds to develop the construction industry. "Long money" attracted for 20–30 years is proposed to be directed to a program to build one million apartments. This solution is designed to solve two problems at once: ensure investment returns for pension funds and solve the housing issue for socially vulnerable layers of the population. The program provides for the construction of quality housing costing $30,000–$50,000, which will be available to teachers, medical workers, military personnel, and large families. Purchase conditions include an installment plan for 25 years at 3% per annum. Earlier, the Minister of Social Policy Denys Shmyhal confirmed that the reform would be based on a three-level system covering solidarity payments, professional pensions, and personal savings, which fully corresponds to the declared strategy. ## πŸ” Fact-Check Verification - [Pensions to rise to 6-7 thousand hryvnias: conditions of the reform named in the Rada](https://www.rbc.ua/ukr/news/pensiyi-zrostut-6-7-tisyach-griven-radi-nazvali-1787118435.html) - Основной источник ΠΈΠ½Ρ„ΠΎΡ€ΠΌΠ°Ρ†ΠΈΠΈ ΠΎ заявлСнии Π“Π΅Ρ‚ΠΌΠ°Π½Ρ†Π΅Π²Π°, Ρ†ΠΈΡ„Ρ€Π°Ρ… ΠΈ ΠΌΠ΅Ρ…Π°Π½ΠΈΠ·ΠΌΠ°Ρ… Ρ€Π΅Ρ„ΠΎΡ€ΠΌΡ‹. - [New pension reform: the government is preparing large-scale changes for Ukrainians](https://www.unian.net/economics/finance/pensionnaya-reforma-pravitelstvo-gotovit-masshtabnye-izmeneniya-dlya-ukraincev-13406160.html) - Π”ΠΎΠΏΠΎΠ»Π½ΠΈΡ‚Π΅Π»ΡŒΠ½Ρ‹ΠΉ контСкст ΠΎ Ρ‚Ρ€Π΅Ρ…ΡƒΡ€ΠΎΠ²Π½Π΅Π²ΠΎΠΉ систСмС ΠΈ коммСнтариях министра Π£Π»ΡŽΡ‚ΠΈΠ½Π°. ## ❓ FAQ ### Q: How much will the minimum pension be after the reform? **A:** According to government plans, the minimum pension should rise to 6–7 thousand hryvnias. ### Q: How does the accumulation level work? **A:** The state doubles the employee's contributions: if a citizen pays 1%, the state adds another 1%; if 2% β€” then another 2%. ### Q: Who will be eligible for preferential housing under the program? **A:** The apartment construction program at 3% per annum is intended for teachers, medical workers, military personnel, and large families.