It has been revealed that Ukrainians who decide to extend their working life upon reaching retirement age can significantly increase the amount of their pension.
Abroad, older individuals who have completed their working careers often break stereotypes and lead fulfilling lives without relying on external assistance. In contrast, Ukrainians are reluctant to retire if they are still employed, as it is very challenging to live on government payouts. Indeed, as of January 1, 2025, the average pension in Ukraine amounted to 5789.05 UAH, which translates to less than 200 UAH per day.
Thus, Ukrainians continue to work as long as their health permits.
However, it is also important to know that continuing to work after reaching retirement age can significantly increase the size of one’s pension. This is stipulated by the Law of Ukraine on "Mandatory Pension Insurance."
Yes, deferring pension benefits in Ukraine does indeed lead to an increase in its amount. This happens because each additional year of work after reaching retirement age allows for the accumulation of more work experience, which is a component of the calculation formula.
If a person postpones receiving their pension for a certain period, the pension amount will increase due to additional percentages accrued during that time. As a result, retiring later will yield a larger payout than if the individual started receiving their pension immediately upon reaching retirement age.
Consequently, with a pension deferral, the payouts increase:
- if deferred for a period of up to five years – by 0.5% for each month;
- if the pension is deferred for more than five years – by 0.75% for each month.
If one does not apply for a pension at 60 years old, having the required insurance record, and postpones it until 65 years and 7 months, the amount of payouts may increase by 50%.
By the way, to defer pension payments, it is necessary to submit an application to the Pension Fund before turning 60; otherwise, the benefits may be automatically assigned.