Some periods will not be counted towards seniority: who will face difficulties when retiring?

Studying at higher educational institutions or colleges is often considered a normal stage of a career for many Ukrainians. However, it is important to know that this period is not always counted towards the insurance period required for retirement.

According to the Law of Ukraine No. 1788 “On Pension Provision”, until January 1, 2004, the time spent studying at higher and secondary educational institutions (full-time) was counted towards the length of service.

Therefore, those who studied in the 90s or early 2000s can be sure that the period of their study will automatically be counted towards their pensionable service.

Changes after 2004

Since the beginning of 2004, a new pension provision system has been introduced in Ukraine. Law No. 1058 “On Mandatory State Pension Insurance” changed the term “working experience” to “insurance experience”, which means the period during which contributions were paid to the Pension Fund for an employee.

Thus, under the new rules, the time of study without formalizing employment relations and paying insurance contributions will not be taken into account in the insurance experience.

People who received a diploma after 2004 and did not officially work during their studies will not be able to count these years towards their insurance experience. This may significantly affect the possibility of retiring at 60, as the requirements for experience will increase until 2028, until they reach the minimum of 35 years.

As a result, some Ukrainians may not retire on time or will be forced to buy additional years of experience at their own expense.