A large-scale pension reform is being prepared in Ukraine: what will change for pensioners in 2027

The Ministry of Social Policy of Ukraine is to prepare and submit to the Cabinet of Ministers a draft law on pension reform by the end of October 2026. The government plans to change the mechanism for calculating pensions, increase the dependence of payments on insurance contributions, and introduce new pension security instruments.

When will the government present the pension reform

In accordance with the approved plan of priority actions of the government for 2026, the Ministry of Social Policy is to develop and submit to the Cabinet of Ministers a draft law on reforming the pension system in October.

The main tasks of the upcoming changes are:

ensuring the financial sustainability of the pension system;

increasing fairness in the assignment of pensions;
creating a transparent and understandable mechanism for calculating pension payments;

strengthening the connection between the size of the pension and the insurance contributions paid.

The reform is expected to cover several areas of pension security and will be implemented in stages during 2026–2027.

What changes are planned to be introduced in 2027

The Cabinet of Ministers’ Activity Program provides for a comprehensive reform of the current pension system.

In particular, several important innovations are planned for 2027.

1. Guaranteed social payment by age

The government plans to introduce a guaranteed social payment for people of the appropriate age.

The specific conditions for its assignment and amounts should be determined within the framework of legislative changes.

2. Insurance part of the pension

It is assumed that the amount of the insurance component of the pension will directly depend on the amount of contributions paid during employment.

Thus, pension payments are planned to be more closely linked to the official income of citizens and their participation in the system of mandatory state pension insurance.

3. Reform of special pensions

In 2027, the government also intends to transform the system of special pensions into professional pension mechanisms.

This is a review of approaches to pension provision for certain professional categories.

4. Voluntary funded pension system

Another direction of the reform will be the introduction of a voluntary funded system with a mechanism for automatic involvement of citizens.

It is planned to create the opportunity to form additional pension savings along with payments within the state pension system.

Will the size of Ukrainian pensions change

At the moment, the government has not published the final text of the draft law, so the specific formulas for calculating pensions and possible changes in the size of payments remain unknown.

The very fact of preparing a pension reform does not mean an automatic increase or decrease in pensions from 2027.

The corresponding changes will require legislative regulation.

What else does the government plan to change

In parallel with the pension reform, the Ministry of Social Policy must, by December 2026, work on the issue of bringing the application of the subsistence minimum into line with the real needs of the population.

This indicator is used when determining a number of social guarantees and state payments.

At the same time, the specific parameters of the upcoming changes have not yet been approved.

When will the new rules come into force

Submission of a draft law to the Cabinet of Ministers is only the initial stage of the legislative process.

The introduction of new rules requires approval by the government, registration of the draft law in the Verkhovna Rada, its parliamentary consideration and adoption.