Benefits of working in retirement: how your payment will increase each month

People who have reached retirement age in Ukraine should carefully consider whether to apply for a pension immediately or whether it is better to continue working.

A few extra months of work after 60 can significantly increase your future pension benefits.

According to the Pension Fund, each month of work after reaching the official retirement age provides an additional bonus. If a person works for up to 5 years after reaching 60, 0.5% is added to the pension for each month of work. If the term exceeds five years, the bonus increases to 0.75% for each month. Thus, a year of work can increase the pension by 6%, and five years of work can increase it by 30%.

Today, the average pension in Ukraine is about 5,850 hryvnias. Those who do not rush to retire can receive more – up to 6,200 hryvnias, thanks to new contributions and increased length of service.

“I worked for four more years after 60, and now I get much more than my friends who retired immediately,” shares Ms. Oksana’s experience.

Additionally, pensioners have the option to change the method of receiving their payments. You can refuse postal delivery and have your pension paid directly to a bank card, choose an alternative bank, or update your details. The Main Directorate of the Pension Fund of Ukraine stated that to proceed, an application must be submitted in person or through the electronic services web portal.

Therefore, if you want to ensure a comfortable old age, it may be worthwhile to continue working to increase your future income.

Let’s recall what advantages work provides in retirement: what bonuses will older adults who continue to work receive?