Ukraine is taking inspiration from Canada as it reforms its pension system and moves away from Soviet-era concepts.
The topic has been frequently discussed by both countries this year, including during last month’s G7 meeting in Alberta.
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In May, the two countries held preliminary agreements on the participation of Canada in the forthcoming reform of the Ukrainian pension system. Also during that month, Minister of Finance and National Revenue François-Philippe Champagne held a closed-door meeting with Canadian institutional investors alongside Sergii Marchenko, Ukraine’s Minister of Finance, to discuss “significant investment opportunities” that lie ahead for international and Ukrainian businesses as part of Ukraine’s post-war reconstruction program, according to a federal government spokesperson.
“We also thought about how we could eventually work together to share best practices in building a pension system in Ukraine,” said Champagne, in a press release.
In a January press conference, Ukraine’s Minister of Social Policy Oksana Zholnovych said the new pension system in Ukraine could be introduced as early as 2026, noting a bill has already been developed by the country’s federal cabinet.
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Due to the war with Russia and a subsequent tough business environment, Ukraine’s pension sector has faced a serious crisis in recent years, mainly reflected by small pension benefits payouts.
During the press conference, Ukraine’s Deputy Minister of Finance Yevgeniy Kapinus said the average monthly pension payout doesn’t exceed UAH6341 (US$152) and nearly 30 per cent of retirees receive no more than UAH3,300 per month, one of the lowest figures in Europe.
While official data hasn’t been disclosed since 2022, financial analysts believe the Pension Fund of Ukraine’s deficit — which sat at roughly UAH 20 billion prior to the war — has significantly increased since then.
And while the number of retirees has decreased — from 12 million in 2015 to 10.3 million in 2025 — the pension system also faces pressure as the number of working-age citizens is steadily decreasing due to the ongoing war.