Pension Increase: Why Some Ukrainians Are Losing Age Supplements

In Ukraine, pension increases do not always lead to higher payments for all categories of pensioners. The country has a system of age supplements that provides additional payments for older individuals. However, after pension indexing, some citizens may lose the opportunity to receive these additional funds.

This is reported by AgroReview

Right to Age Supplements

Ukrainian citizens who reach the age of 70 are entitled to monthly supplements to their pensions:

• From 70 to 74 years old – up to 300 hryvnias;
• From 75 to 79 years old – up to 456 hryvnias;
• From 80 years old and older – up to 570 hryvnias.

These supplements begin to be calculated from the moment the corresponding age is reached. If a pensioner celebrates their 70th birthday in the middle of the month, they receive half of the supplement for that period, and the full amount starting from the next month.

Loss of Supplements After Indexing

Despite the existence of age supplements, there are also important limitations: if the total amount of the pension exceeds 10,340 hryvnias and 35 kopecks, the additional payments cease to be credited. Thus, after indexing, those pensioners whose pensions exceed this threshold lose the right to age supplements.

There are also cases where even if the increased pension remains below the threshold, it may be close to it. For example, if the pension amount after indexing is 10,300 hryvnias, the supplement will not exceed 40 hryvnias to ensure that the total amount does not exceed 10,340 hryvnias and 35 kopecks.

Pensioners who reach 75 or 80 years old do not receive a new supplement in addition to the previous one, but only the difference between the new and old amounts:

• Upon reaching 75 years, the supplement increases from 300 to 456 hryvnias, effectively adding 156 hryvnias;
• Upon reaching 80 years, the amount increases from 456 to 570 hryvnias, which means a real increase of 114 hryvnias.

It is worth noting that the threshold of 10,340 hryvnias has remained unchanged since it was set according to the average salary in 2020. Despite the growth of economic indicators, this limit has not been revised, leading to more pensioners losing the opportunity to receive age supplements with each new indexing.

Thus, while pension indexing is a positive step, it can negatively impact the financial situation of some Ukrainians who relied on these additional payments.