The modern life rhythm is dynamic and rapid. It makes impact on the life of students, the specific of which is to live for the day. That is why an issue on an adequate old age ensuring and on the future prospective is urgent for the modern youth. Because only few people at twenty are thinking about life in advanced years. Today there are a lot of problems in social sphere; one of them is connected with the pension provision. The pension reform, with the social justice as the key idea, has become an important step for 20 years after the collapse of the USSR. Moreover, in view of reform, one shall think about the future pension as early as possible.
Ukraine almost leads the world in the percentage of pension payments. They comprise about 18 % of the gross domestic product, which exceeds the similar rate of the developed European countries by half. Additionally, we have a very high social payment share in the salary structure, that is more than 40 % of the earned. It would seem that the pensioners shall live prosperously in such country. But it is the opposite: we have one of the lowest average pensions on the continent. Now almost 65 % of pensioners receive pension under 1000 UAH per month, that is 4–10 times less than in other European countries [1].
The object of the article is an analysis of the pension reform, its reasons and consequences. The statistical data, provisions of laws, publication in mass media by the given topic were used for this purpose.
The total population as of January 1, 1991 comprised 51623,5 thousand people, and as of January 1, 2011 – 45598,2 thousand people [2]. In the population structure of the year 1991 the persons of pre-retirement and retirement age comprised 24,2 %, and of pension age – 12,3 %. In 2011 the situation changed significantly.
As of May 1, 2011 there are 14 million payers of insurance contributions and 13,77 million pensioners in Ukraine [3]. For that reason the number of problems appears, the main among them is that the pension means are distributed among the great number of people, and the average amount of pension is very small; sometimes lower then the subsistence level.
According to results of poll conducted in March 2006 it was registered that the pensioners' income is not enough for satisfaction of the first priority needs, fig. 1. The major shortage of income was felt by respondents in purchase of the long-term use goods (78,2 % of respondents), for rest (75,3 %), in medical service (59,8 %), in buying of clothes (53,4 %), and the lowest – for satisfaction of needs in food stuff and payment for accommodation, 35,5 % and 31,0 % of respondents correspondingly [4].
In summary, the low level of social transfers, inherited by Ukraine from the administrative economic planning system, remains the main factor of the basic vulnerability of population.
Figure 1. The results of the pensioners poll for assessment of the level of their income
The Law of Ukraine “On Measures for Legislative Provision of the Pension System Reform” No. 3668‑VI has become an important step towards the further development of social sphere in Ukraine 20 years after the collapse of the USSR [5]. The main goal of reform is to create conditions for the pension increase, provision of an adequate old age of citizens, observance of principles of social justice and security, elimination of huge gaps between special and common pensions [6].
The government and officials insist on the positive changes in country with adoption of reform. “In 2012 the cost cutout will comprise 2,5 billion UAH, in 2013 – 6 billion, in 2016 – 9 billion, in 2022 – about 30 billion UAH”, – says about social and economic effect from adoption of reform the Vice‑premier, the Minister of Social Policy of Ukraine, Sergey Tigipko [3]. The Director of the World Bank in Ukraine, Martin Raiser, thinks that the pension reform, offered by the government, belongs to the “most socially balanced reforms in Europe”; and the World Bank supports these measures. He noted that people will begin to declare salary honestly and to make social contribution only when they see connection between paid contributions and receipt of pension [7].
It may be concluded that the pension reform is intended to restore justice in society, and the second level of pension system will become a source of long‑term investments in Ukraine and will give a possibility for the further country development. In consequence, after reform the pension system will become fairer. The citizens will be granted a possibility to receive higher pension provided that they will pay higher pension contributions.
List of reference links
1. З пенсійною реформою зволікати не можна / Українська правда. Access mode: http://www.pravda.com.ua/articles/2011/02/18.
2. Распределение постоянного населения по возрасту. Access mode: http://www.ukrstat.gov.ua/operativ/operativ2007.
3. Пенсійні хроніки: реформа хоч і пом’якшена але з ефектом // Віче. – 2011. – №13. – С. 4–6.
4. Базовая защищенность населения. Access mode: http://www.ukrstat.gov.ua/operativ/operativ2006.
5. Закон України «Про заходи щодо законодавчого забезпечення реформування пенсійної системи» № 3668‑VI. Access mode: http://zakon1.rada.gov.ua.
6. Про реформу. Access mode:http://pension.kiev.ua.
7. Директор Світового банку в Україні: «Ваша пенсійна реформа є однією з найбільш збалансованих» // Віче. – 2011. – № 5, – С. 4–5.