THE MODERN PARADIGM OF PENSION SECURITY IN UKRAINE

Abstract

The article contains a study of the problems of pension provision in Ukraine. It is noted that each country forms its own pension system, which usually has three levels - solidarity, accumulation and mixed (the state and citizens are responsible for accumulating money for pension payments). An assessment of the advantages and disadvantages of the three levels of the pension system showed that the solidarity level has the greatest risks. It is noted that in international practice the trend of combining all three levels dominates, that is, the state pension is combined with private savings from various sources. According to the results of the assessment of the compliance of the domestic pension provision with the World Bank principles for determining the effectiveness of the pension system, it was concluded that the Ukrainian pension system does not comply with these principles, has distortions in social justice and is in an unsatisfactory state. It is substantiated that the existing pension system needs to be reformed on the basis of a certain modern paradigm, and should be aimed at creating conditions for a decent life for pensioners, reducing the differentiation of pension payments, and transitioning to a multi-level model of pension provision (combining solidarity, mandatory accumulative and voluntary levels). This will ensure: financial stability, social justice, and increasing citizens' interest in accumulating funds. The main directions of the modern paradigm of pension provision in Ukraine are identified, which determine the vector of pension system reform, in particular, the transition from a system in which employees support pensioners to a system where citizens accumulate funds for their own old age. It is noted that it is such a pension system that acquires signs of resilience. It is substantiated that the introduction of the second mandatory accumulative level of the pension system in Ukraine requires appropriate legislative regulation; the presence of a sufficient list of financial instruments that will generate a return higher than inflation; improving the quality of institutions, strengthening trust in the activities of non-state pension funds, economic stability and political will to implement consistent reforms.