Present-Day State and Problems of Solidary Pension System Development in Ukraine

Pension provision is one of the key components of public social protection system aimed at support for retired citizens and their families. The article provides the assessment of the present-day state and development of joint-and-several pension system of Ukraine. The first level pension system problems in Ukraine have been systematized, causes of their occurrence have been considered. Rates of Pension Fund financial flows growth have been analyzed owing to which recommendation on pension system development and its efficiency increase have been given and grounded. According to the author, pension insurance improvement provides for implementation of the second level of pension system since, due to demographic trends, joint-and-several pension system is not able to ensure an adequate level of pension substituting lost earnings and optimal differentiation of pensions. For the purposes of pension legislation improvement in Ukraine it is appropriate to determine the fair mechanism of pension payments growth and develop people's interest in insurance fees into cumulative pension system.