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Pensions in Ukraine: comparison with other countries

Jason Kowalski

June 3, 2024
7 min read
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Pensions in Ukraine: comparison with other countries

The average pension in Ukraine as of June 2024 is UAH 4,339, which is equivalent to USD 103.1. This is significantly lower than in most Eastern European countries, much lower than in a number of Latin American countries, significantly lower than in Asia, and disproportionately lower than in North America and Australia. By the way, this is an average pension, which means that there are also lower pensions, although there are also much higher ones (for a small number of people). It is average because some ex-officials may have, say, 40 thousand hryvnias a month, some even 200 thousand, and most people, for example, have 2900 hryvnias, and then it is all added and divided by the number – the arithmetic mean. And low pensions in one of the richest countries in the world were like this even before the war, and after the full-scale invasion, the situation only got worse.

Pension dynamics in Ukraine

Pensions in Ukraine have increased slightly in recent years, but still remain low. In 2014, the average pension was UAH 2,100, and in 2020, it will be UAH 3,600.

Comparison with African countries

South Africa: The average pension is about $250 USD per month – 10,500 UAH per month.
Morocco: The average pension is about $200 USD per month – 8400 UAH per month.
Kenya: The average pension is about $100 USD per month – 4200 UAH per month.
Nigeria: Most elderly people do not have access to the pension system.

Average pension in Southeast Asian countries

Vietnam.

Average pension: $150 USD per month – 6300 UAH per month.
Retirement age: 60 years (men), 55 years (women)
Funding system: PAYG, with contributions from employees and employers

Indonesia.

Average pension: $100 USD per month – 4200 UAH per month.
Retirement age: 56 years (men and women)
Funding system: Mixed, with solidarity and private components

Bangladesh

Average pension: $50 USD per month – 2100 UAH per month.
Retirement age: 60 years (men and women)
Funding system: Solidarity, with contributions from employees and employers

India.

Average pension: $200 USD per month – 8400 UAH per month.
Retirement age: 60 years (men and women)
Funding system: Mixed, with solidarity and private components

Philippines

Average pension: $250 USD per month – 10500 UAH per month.
Retirement age: 60 years (men and women)
Funding system: Mixed, with solidarity and private components

Thailand.

Average pension: $300 USD per month – 12600 UAH per month.
Retirement age: 60 years (men and women)
Funding system: Mixed, with solidarity and private components

Pensions in South America

Pension systems in South America vary in terms of structure, benefits, and accessibility. Here is a brief overview of pensions in some of them:

Brazil

Average pension: $450 USD per month – 18900 UAH per month.
Retirement age: 65 years (men), 60 years (women)
Funding system: PAYG, with contributions from employees and employers

Argentina.

Average pension: $300 USD per month – 12600 UAH per month.
Retirement age: 65 years (men and women)
Funding system: Solidarity, with contributions from employees and employers

Chile.

Average pension: $700 USD per month – 29400 UAH per month.
Retirement age: 60 years (men and women)
Funding system: Private, with individual savings

Colombia.

Average pension: $250 USD per month – 10500 UAH per month.
Retirement age: 62 years (men), 57 years (women)
Funding system: Solidarity, with contributions from employees and employers

Peru.

Average pension: $350 USD per month – 14700 UAH per month.
Retirement age: 65 years (men), 60 years (women)
Funding system: Mixed, with solidarity and private components

Pensions in Serbia, Croatia, Albania, Belarus, Kazakhstan, Azerbaijan

Serbia.

Average pension: €320 per month – 14080 UAH per month.
Retirement age: 65 years (men and women)
Funding system: Solidarity, with contributions from employees and employers

Albania

Average pension: €200 per month – 8800 UAH per month.
Retirement age: 65 years (men), 60 years (women)
Funding system: Mixed, with solidarity and private components

Croatia

Average pension: €700 per month – 30800 UAH per month.
Retirement age: 65 years (men and women)
Funding system: Solidarity, with contributions from employees and employers

Belarus.

Average pension: $200 USD per month – 8400 UAH per month.
Retirement age: 65 years (men), 60 years (women)
Funding system: PAYG, with contributions from employees and employers

Kazakhstan.

Average pension: $150 USD per month – 6300 UAH per month.
Retirement age: 63 years (men), 58 years (women)
Funding system: Mixed, with solidarity and private components

Azerbaijan

Average pension: $250 USD per month – 10500 UAH per month.
Retirement age: 65 years (men), 60 years (women)
Funding system: PAYG, with contributions from employees and employers

Average pension in Iran

The average pension in Iran is about 15,000,000 Iranian rials (IRR) per month, which is equivalent to about $350 (14700 UAH) at the exchange rate as of June 3, 2024.

Average pension in Iraq

The average pension in Iraq is about 450,000 Iraqi dinars (IQD) per month, which is equivalent to about 300 US dollars (12600 UAH) at the exchange rate as of June 3, 2024.

Average pension in Turkey

As of June 2024, the average pension in Turkey is 7,500 Turkish Liras (TRY ) per month, which is equivalent to approximately USD 393 (UAH 16506).

Average pension in Russia

Taking into account the projected average pension in Russia in 2024 (23,244 rubles) and the expected exchange rate of the ruble to the US dollar (65 rubles to the dollar), the average pension in Russia in 2024 in US dollars could be about 358 USD (15036 UAH) per month.

Comparison with “rich” countries

Europe: The average pension in Europe is 2,500 euros (2,725 USD or 11,4450 UAH per month). The highest pensions are in Iceland (4,100 euros or 180,400 UAH per month), Luxembourg (3,500 euros or 154,000 UAH per month) and Norway (3,300 euros or 145,200 UAH per month).
North America: The average pension in the United States is $1,600 or UAH 67,200 per month, and in Canada – $1,800 or UAH 7,5600 per month.
Asia: The average pension in Japan is USD 1,500 or UAH 63,000 per month, and in South Korea it is USD 1,200 or UAH 50,400 per month.
Australia: The average pension in Australia is 2,500 USD or 105,000 UAH per month.

Average pension in Poland

As of June 2024:

Average pension: 545 USD per month or 22890 UAH per month.
Minimum pension: 336 USD per month or 14112 UAH per month.
Maximum pension: USD 1,752 per month or UAH 73584 per month.

Factors affecting pensions in Ukraine

The following factors affect the level of pensions in Ukraine:

Economic situation: The low level of economic development in Ukraine results in limited opportunities for pension increases.
Demographic situation: The growing number of pensioners with a relatively small number of working people puts an additional burden on the pension system.
Corruption: Corruption in the country and in the pension system can lead to unfair distribution of pension benefits.

Reforming the pension system in Ukraine

Ukraine is in the process of reforming its pension system, which aims to increase the level of pensions and make the system fairer. However, the reform is a complex process that requires time and significant financial resources.

Conclusion.

Pensions in Ukraine are significantly lower than in most countries, even in underdeveloped ones. Reforming the pension system is necessary to improve the lives of pensioners in Ukraine.

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