PENSION COLLAPSE: Ukraine urges citizens to stay in the workforce for as long as possible to fund their own retirement

The government of Ukraine will not be able to pay its elderly citizens adequate pensions for the foreseeable future due to a protracted demographic crisis.

Darya Marchak, the deputy head of the Ukrainian Ministry of Social Policy, offered this stark assessment of Ukraine’s pension system during an interview. She underscored the severity of the situation by highlighting that each taxpayer is currently only able to support one pensioner, a ratio that is expected to exacerbate in the future.

Marchak’s concerns were rooted in projections from the State Statistics Service of Ukraine, indicating a significant decline in Ukraine’s population from 38 million in 2022 to an estimated 25 million by 2050. This demographic trend poses significant challenges to the sustainability of the pension system.

While acknowledging the government’s commitment to providing a guaranteed portion of pensions, Marchak emphasized that the amount would be minimal. In response, she urged Ukrainians to proactively save for their personal pensions and to prioritize maintaining employment for as long as possible. (Related: Creditors pressure Ukraine to PAY UP on its loans.)

Marchak drew comparisons to European countries, where pensions serve as a basic safety net, underscoring the importance of personal savings for those seeking higher pension benefits.

The complexity of Ukraine’s pension crisis was further compounded by warnings from Ukrainian Deputy Prime Minister Irina Vereshchuk about potential issues with pension payments, civil servant salaries, budget deficits and delays in Western financial assistance.

In January, Ukrainian President Volodymyr Zelensky drew attention to the looming risk of over 11 million pensioners being left without payments, stressing the urgent need for Western support to cover the costs of the country’s social benefit programs.

Zelensky, despite his pleas, has also not received any help from its main benefactor, the United States. Despite the U.S. Congress passing a multibillion-dollar military assistance package back in April, none of the allocated funds were designated to help keep Kyiv’s pension systems afloat, underscoring the ongoing challenges facing Ukraine’s social welfare system amidst geopolitical tensions.

Most of Ukraine’s elderly population affected by conflict with Russia

As early as last year, a warning was raised to address the needs of Ukraine’s elderly population, the failure of which could hinder the nation’s recovery efforts, as outlined by HelpAge International.

The aging demographic in Ukraine poses substantial implications for the country’s social and economic resurgence. Even before the beginning of Russia’s special military operation, approximately 25 percent of Ukraine’s populace was aged 60 and above, marking one of the highest proportions of elderly individuals globally, with this figure steadily increasing.

Before the conflict, older adults constituted a quarter of Ukraine’s population, a ratio that has likely risen due to the departure of younger generations and the decision of many seniors to remain in their homes. This trend is anticipated to escalate if Ukraine gets accepted as a full member of the European Union, granting its citizens freedom of movement across the continent.

In devising a comprehensive recovery plan, Ukraine must account for the shifting demographics and prioritize the needs of its elderly populace. This entails not only rebuilding healthcare and long-term care services but also adapting them to cater to an aging demographic. Additionally, the government must address housing accessibility and infrastructure, and establish a sustainable pension system.

The war’s toll on public health facilities, the surge in disabilities and the prevalence of mental health issues underscore the urgency of developing responsive long-term care and support systems for the elderly within the community.

The conflict has plunged 7.1 million people into poverty, with a disproportionate impact on single older Ukrainians, 80 percent of whom live below the poverty line and struggle to afford basic medical necessities. Enhancing the sustainability of the state pension system is imperative for ensuring both the nation’s future stability and the dignity of its elderly citizens.

Watch this news report explaining how the first 24 hours of Russia’s renewed offensive on Kherson destroyed 51 Ukrainian Army bases and four military depots.

This video is from the Vampire Slayer channel on Brighteon.com.

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Sources include:

RT.com

HelpAge.org

Brighteon.com