Pension System of Ukraine under Conditions of Reformation

The article reveals a number of shortcomings of the Soviet pension system. It explains reasons that made the state re-consider the basic principles of the pension sphere and re-construct its institutions. It pays a special attention to the market of the non-state pension provision, which is the most dynamic one among the markets of non-bank financial services. Fast growth of main indicators of activity of non-state pension funds (NPF) testifies to it. Creation of open NPF is most active, since they are very flexible in the context of joining or leaving them. Some of the main reasons of slow development of non-state pension provision are as follows: limited choice of financial instruments suitable for investing pension funds into them; insufficient interest of employers in financing voluntary pension programmes for employees; and low level of public information on the essence and role of the accumulative pension system in the society. The article considers the most complex problems that arise in the process of introduction of the reformed pension system in Ukraine. Using international experience and taking into account specific features of socio-economic development of Ukraine, the article develops recommendations on solution of the said problems. Introduction of the pension reform in Ukraine should rest on demographic, legal and organisational grounds. Success of the pension reform in the long-term prospect requires active actions for creation of a developed insurance industry. The considered problems and also recommendations and approaches to their solution bring us a bit closer to realisation of main goals and principles of the reformed pension system.