Recalculation with tricks: pensioners may lose part of their benefits instead of increasing them

In Ukraine, pension recalculation may not always lead to an increase in payments.

Pensioners in Ukraine have the opportunity to review the size of their pension once every two years. However, this process does not always lead to the desired increase; sometimes, the recalculation may reduce the amount of the payment.

The main factors that affect the recalculation are:

New insurance experience gained after retirement.

The earnings coefficient compares the pensioner’s income with the average indicators in the country.

If the average salary in the state grows faster than that of a particular pensioner, this may lead to a decrease in his individual coefficient. In such a situation, instead of improving, pension payments may decrease.

Each pensioner can choose the method of recalculation:

Perform recalculation only based on additional experience.

Combine experience with income.

Experts note that the automatic recalculation, carried out by the Pension Fund annually from April 1, should only consider the option that is beneficial for the pensioner. This means that the system should not reduce the pension size due to a change in the earnings coefficient.

Thus, the recalculation can be both an opportunity to increase the amount of benefits and a risk of reducing the amount. Therefore, pensioners should carefully assess their situation before applying for a review of benefits.