The Ukrainian government has proposed some big changes to its pension system that have many people worried. According to a recent analysis of the country’s 2025 budget by Ekonomicheskaya Pravda, a business news site, these changes could result in billions of hryvnia (the local currency) being taken back from pension accounts.
On September 13, the Cabinet of Ministers approved a new bill that has now been sent to the parliament for review. The plan aims to cut social spending by over 10%, which is about $1.2 billion. The government is looking to save money mainly by reducing the money given to Ukraine’s pension fund.
One of the most controversial parts of this new plan involves Oschadbank, the bank that manages pension accounts in Ukraine. The government wants this bank to take back money from accounts that haven’t been used in the last 12 months. If you haven’t accessed your pension account recently, you could be at risk of losing your savings!
Displaced Pensioners at Risk
Another worrying provision targets displaced pensioners—people who have had to move from their homes due to conflict or other reasons. These pensioners are required to confirm their status with the government every year. If they miss the deadline by more than six months, the government may seize their funds. This could impact many individuals who live in different parts of Ukraine or even abroad, making it difficult for them to access their pension money.
The Financial Stakes
While Oschadbank hasn’t shared specific numbers on how many accounts could be affected, the Ukrainian Ministry of Finance believes that at least $275 million could be at stake. The Ministry of Social Policy has pointed out that these new rules will mainly impact those who received the status of internally displaced persons before February 2022.
Political Tensions Ahead
Not everyone agrees with these proposed changes. Some lawmakers are gearing up for a “fierce political battle” over the 2025 budget. The budget itself shows a huge deficit of 1.6 trillion hryvnia (around $38.68 billion), with a whopping 2.22 trillion hryvnia (or $53.6 billion) allocated to defense.
As the government pushes forward with these controversial plans, many pensioners and lawmakers are left wondering: what will happen to their hard-earned money? The outcome of these proposals could change the lives of millions of Ukrainians, and the debate is just beginning.
