The impact of the demographic crisis on the pension system of Ukraine

Abstract

The article is devoted to the problem of the influence of demographic processes in Ukraine on the pension system. Connections between the demographic crisis and the aging of the population, as well as between the aging of the population and the crisis of domestic pension provision, were established. Peculiarities of the development of demographic processes in Ukraine at the current stage are studied. A number of factors of the demographic crisis have been identified, both before the start of a full-scale war and during hostilities. The factor of low birth rate is analyzed as such, which in the medium and long term leads to the crisis of the pension system. The consequences of external migration processes during the war, in particular the mass departure of Ukrainian refugees ("persons who received temporary protection") to the EU, are determined. The problem of unreliability of statistical information regarding the population of the temporarily occupied territory of Ukraine is highlighted. The existing state of the pension system of Ukraine is analyzed and its prospects are outlined. The key role is assigned to the first (solidarity) level of the pension system. It has been proven that in the near future due to the existing dynamics of demographic processes, the pension system of Ukraine will require reforms aimed at reducing the expenses of the Pension Fund, in particular, a new increase in the retirement age. Necessary measures of pension reforms are outlined. The widespread point of view regarding the lack of need to raise the retirement age due to the short average life expectancy of Ukrainians, particularly men, has been refuted. A number of recommendations have been identified regarding the demographic development strategy of Ukraine in the context of preserving the current pension system in the future.