Pensioners risk losing part of their payments: who it concerns
After retirement, many Ukrainians continue to work officially. This raises the question of whether employment affects the size of the pension, the right to additional payments, and the possibility of its recalculation. We explain what changes for working pensioners and what features should be taken into account.
How employment affects the pension
Ukrainian legislation allows pensioners to work officially after retirement. The fact of employment itself is not a reason to stop pension payments — working pensioners continue to receive pension benefits and participate in annual indexation.
At the same time, certain allowances, increases, and additional payments are provided by law only for non-working pensioners. Therefore, after official employment, the right to such payments may be lost. In addition, some types of pension recalculations are carried out only after dismissal or under special rules.
What advantages official employment has
Despite the possible termination of certain additional payments, official work has a number of advantages. For an employed pensioner, the employer pays a single social contribution (SSC), thanks to which the person continues to accumulate insurance experience.
After two years of official work, the Pension Fund may recalculate the pension taking into account the additionally acquired insurance experience. In cases defined by law, the salary received after the pension was assigned may also be taken into account during such recalculation.
Is it worth postponing pension registration
If after reaching retirement age a person does not apply for a pension immediately but postpones its assignment, this may affect the future size of payments.
For each full month of postponing the pension assignment, but not more than five years, its size increases by 0.5%. If a person delays retirement for more than five years, the allowance will be 0.75% for each full month of such postponement.
At the same time, it is worth remembering that during the entire postponement period, the pension is not paid. Therefore, before making such a decision, it is advisable to consider whether the future increase will compensate for the amount of money not received during the postponement period.
Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp, page on Facebook and on Instagram to stay informed about the most important events.
