When to apply for retirement so as not to lose more than 1,000 hryvnias: three months to make a decision

In Ukraine, there is a rule that a delay in submitting a pension application, even for a few weeks, can result in an increase in monthly payments by more than a thousand hryvnias.

Journalist Iryna Polyakova highlighted this aspect of the current legislation, citing the research of independent pension expert Viktor Bogdanov. She noted that the country’s pension system remains unsatisfactory, despite ongoing changes and disputes between political parties. An audit that would confirm the fairness of the calculations is not conducted, which forces people to figure out the complicated formulas themselves.

Among the main factors that affect the amount of a pension is the average salary in the country for the three years before the appointment. A delay in submitting documents can significantly impact this indicator.

For example, a conditional metallurgist named Andriy reached retirement age on October 10, 2024, having 40 years of experience with a salary that is twice the average. If he applies in October 2024, his pension will be calculated based on the average salary for 2021-2023, which is UAH 13,559.41. Thus, he will receive UAH 10,847.53. If he waits until January 2025, then the average salary for 2022-2024 — UAH 15,057.09 will be taken into account, which will provide a pension of UAH 12,045.67. The difference in the amount will entail almost UAH 1,200 per month.

This norm is especially beneficial for those who retire in October, November, or December. The law allows you to apply within three months, as a result of which the pension is assigned from the date of reaching retirement age, which will enable you to receive additional payments for previous months.

However, for those born earlier in the year, applying late can result in the loss of several months of benefits, which the increased amount may not fully cover.

Experts argue that this legislative feature creates opportunities for abuse. Pension Fund employees may not report favorable options or indicate the possibility of “resolving the issue” for a fee. Bogdanov noted that there have been cases where people were offered an increase in pensions under “special conditions.”

The journalist also emphasizes that citizens have the legal right to the optimal calculation of their pension, and knowledge of their rights will allow them to avoid unfavorable decisions.