Financial sustainability of the state pension system of Ukraine

  • Received December 20, 2017;
    Accepted April 2, 2018;
    Published April 20, 2018
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  • DOI
    http://dx.doi.org/10.21511/imfi.15(2).2018.02
  • Article Info
    Volume 15 2018, Issue #2, pp. 17-28
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The financial situation of the Ukrainian pension system and the problems of its reforming play an important role in determining the general standard of living in the country. The institutional weaknesses in the financial management of the state pension system have led to an unbalanced budget of the Pension Fund of Ukraine and a low standard of living for pensioners. In order to identify the potential for building an effective system of pension insurance, it is necessary to study the modern aspects of financial provision of the Ukrainian pension system. The article defines the economic interrelations between the processes of forming the financial resources of the Pension Fund of Ukraine and the volume and structure of the gross domestic product. In view of this, the financial sustainability of the state pension system of Ukraine has been researched and the determinants of its stable functioning in the years 1999–2017 have been identified, which enables to influence the process of effective formation and use of pension resources and to identify the strategic directions of reforming the pension system.

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    • Table 1. Dynamics of UST indicators for compulsory state social insurance during 2013–2016
    • Table 2. The dynamics of fund flows to the state budget of Ukraine to be transferred to the Pension Fund of Ukraine in 2005–2016, UAH mln
    • Table 3. The share of government pension provision in GDP of emerging countries, %
    • Table 4. Key indicators characterizing the financial provision of the Pension Fund of Ukraine functioning for the period 1998–2017
    • Table 5. Definition of the type of the Ukrainian pension system financial sustainability based on financial determinants
    • Table 6. Calculation of financial determinants for defining the type of financial sustainability of the Ukrainian pension system for 1999–2017
    • Table 7. Identification of financial sustainability of the Ukrainian pension system for 1999–2017