---
title: "Pension Reform in Ukraine: New Rules, Transparent Formula, and No Increase in Retirement Age"
description: "The Cabinet of Ministers will present the Rada with a concept for pension reform. The retirement age will not be increased, but the requirements for work experience will be increased to 35 years. The principle of \"as much as you earned, so much you get\" is introduced and clan payments are abolished. 🇺🇦📉"
date: 2026-07-08T11:02:00.000Z
lang: en
url: https://xab.info/en/posts/pension-reform-in-ukraine-new-rules-and-no-increase-in-retirement-age
tags: []
publisher: "XAB.info"
---

# Pension Reform in Ukraine: New Rules, Transparent Formula, and No Increase in Retirement Age

![Retirees in Ukraine calculating pensions with calculator and documents — illustration for news on pension reform](https://xab.info/media/2026/07/09/pensionnaya-reforma-v-ukraine-novie-pravila-i-otkaz-ot-povysheniya-vozrasta/pensionnaya-reforma-v-ukraine-novie-pravila-i-otkaz-ot-povysheniya-vozrasta-1.webp)

On July 8, the Cabinet of Ministers of Ukraine will present the Verkhovna Rada with a concept for a comprehensive pension reform. The document, prepared by the government, aims to eliminate systemic imbalances and create fair conditions for all generations of citizens. Minister of Social Policy Denys Shmyhal and the head of the relevant parliamentary committee Danylo Hetmantsev have already outlined the key principles of the upcoming changes.

### Principle: "Pension is what you earned"

The foundation of the new system will be a direct dependence of the payment amount on the sum of contributions paid by the citizen throughout their working life. The calculation formula will be maximally transparent: the higher the contributions, the higher the pension. This should put an end to the situation where people with identical work experience and salaries receive different payments due to differences in the year of retirement.

The reform provides for the abolition of so-called "clan pensions" and guarantees that the minimum payment will not be lower than the actual subsistence level. For citizens who do not have a full insurance record, a guaranteed basic payment is introduced. Its amount will be adjusted annually depending on the possibilities of the state budget, which is intended to prevent an increase in poverty among pensioners.

### Three-level system and professional pensions

The new model is based on a three-component structure. The first level is a modernized solidarity budget. The second level concerns special pensions. Expenditures for payments for preferential work experience or early retirement will no longer be covered from the general pool. For such categories of workers, mechanisms for professional pensions will be created, financed by increased rates of the single social contribution (SSC) or alternative instruments. The transition to this model will take 13 years.

The third component is the accumulation system. It will work on the principle of "automatic subscription": all workers will be included in it automatically, but with the right to opt out. The Ministry of Social Policy warns: voluntary refusal to participate in the accumulation part will logically lead to a decrease in the level of future pension.

### Age is not increased, but requirements for work experience are increased

Despite demographic challenges, the authorities have rejected the idea of increasing the retirement age. It will remain at 60 years. However, the reform focuses on increasing requirements for insurance work experience, which is part of the approved strategy until 2028.

The schedule for increasing work experience looks like this:

- In 2026, 33 years of work experience will be required;

- In 2027 — 34 years;

- In 2028 — 35 years.

If a citizen does not have enough years to retire at 60, the missing work experience can be purchased. Danylo Hetmantsev admitted that the reform is late, but emphasized: "Better late than never".

### Important details for citizens

Experts remind that Ukrainians abroad or in occupied territories will have to undergo an online check to extend payments in 2026. The government has set a strategic task to transform the existing model, making it sustainable and understandable for every contributor.