Pension May Increase by 54%: Who is Entitled to Higher Payments
Ukrainians who, after reaching retirement age, do not rush to apply for a pension and continue to work officially can expect an increase in future payments. This mechanism is provided by law and is designed to encourage citizens to stay longer in the labor market.
The Pension Fund reminds that the right to an increased pension amount belongs to citizens who have reached the age of 60, acquired the necessary insurance record, but have not applied for pension assignment and continued working.
The size of the supplement depends on how long a person postpones applying for a pension. If the deferral lasts up to five years inclusive, the pension increases by 0.5% for each full month. If the pension is applied for more than five years after acquiring the right to it, the supplement is 0.75% for each full month.
For example, a one-year deferral will provide a 6% pension increase, two years – 12%. If a person decides to apply for a pension after six years (72 months), their base amount will increase by 54%.
At the same time, such a decision is not always financially beneficial. Before postponing retirement, it is worth analyzing your own situation and comparing possible advantages and losses.
First of all, it is necessary to assess how much pension payments a person will not receive during the deferral period, how much their future pension will increase, and also take into account health status and personal life circumstances.
For example, if a citizen postponed applying for a pension for two years, not receiving about 120 thousand hryvnias during this time, and the pension supplement after its assignment will be only 600 hryvnias per month, they will be able to compensate for the lost funds only after more than 16 years of receiving increased payments.
That is why experts recommend carefully calculating all possible consequences before making such a decision. Postponing retirement may be beneficial for some citizens but is not necessarily the best solution for others.
Subscribe to our Telegram channel t.me/sudua, follow SUD.UA on Google News , and join us on VIBER, WhatsApp, Facebook and on Instagram to stay informed about the important events.
