The issue of pension provision remains one of the most acute for citizens, especially for those who have retired early. Many Ukrainians who have the right to a pension on preferential terms (for example, parents of children with disabilities at the age of 50) are convinced that reaching the general retirement age will automatically increase their income. However, reality turned out to be different.

According to information published in the Court-Legal Gazette and retold by RBC-Ukraine, the mere fact of reaching the age of 60 is not grounds for reviewing the amount of payments. If a citizen is already receiving a pension by age on preferential terms, legally they are already receiving the funds due to them, and the age marker itself does not change the calculation base.

The myth of automatic increase

The Pension Fund of Ukraine clarified the situation: reaching the age of 60 does not give the right to additional money. This is a common misconception that can lead to financial disappointment. The law does not provide for a separate recalculation of payments solely upon reaching this age, if the pension was already appointed by age on preferential grounds.

The situation would be different if the pensioner were switching from one type of payment to another — for example, from a pension for length of service to a pension by age. In this case, a new indicator of the average salary in the country could be applied. But for those who are already on a preferential pension by age, this mechanism does not work.

How to really increase the pension amount

Although age is not a trigger for an increase, the legislation provides clear mechanisms for increasing payments to working pensioners. There are two main ways:

  • Accumulation of insurance seniority. This is the most reliable method. If a pensioner continues to work, they must work for at least 24 months after the appointment of the pension. Only after this does the legal right to recalculate the amount appear. Every two years of work gives the opportunity to submit an application to increase payments.
  • Annual indexation. Recalculation takes place according to the resolutions of the Cabinet of Ministers, usually in March or April. The state uses different formulas to update payments, choosing the option that is more beneficial to a specific person.

The second method of indexation may be related to the growth of the pensioner's earnings, which allows obtaining a higher coefficient. Such a recalculation can be carried out both automatically in April and upon personal application of the citizen.

Importance of monitoring seniority and contributions

Experts recommend that pensioners carefully monitor their work experience. This is the only sure way to improve their own financial situation within the framework of current legislation. In addition, it is critically important to monitor the timely payment of the Unified Social Contribution (USC) by the employer. Unpaid USC can cost the employee not only the loss of part of pension savings, but also other social guarantees.