PROSPECTS OF THE DEVELOPMENT OF NON-STATE PENSION PROVISION IN UKRAINE

Abstract

The article is devoted to topical issues of development of the system of non-state pension provision in Ukraine. In the article we established that the possibility of individualizing the process of accumulating funds for the needs of pension provision, increasing the size of the average pension in the state and partially solving the problem of the need to realize significant budgetary expenditures to finance the deficit of Pension Fund of Ukraine determines the prospects for the development of non-state pension funds (NPFs) within the framework of the national pension system. The assessment of the main indicators of the functioning of NPFs in Ukraine in recent years has been carried out. The most common investment assets in the portfolio of NPFs of Ukraine in recent years have been investigated. In the article we described significant obstacles to the full functioning of NPFs, such as: obsolescence and limited legal regulation, insufficient income of citizens, too low level of financial literacy and trust of Ukrainians. In the article we identified measures that will ensure the expansion of the geography and improvement in the effectiveness of the functioning of the NPF network in Ukraine. They include: creation of the State Guarantee Fund citizens’ pension contributions to NPFs; increasing the level of transparency of NPFs and strengthening the protection of the rights of their participants; improving and modernizing the general ats, approved by law on risk management of NPFs; carrying out informational measures to increase the number of Ukrainians that are participants of NPFs; abolition of taxation of payments from NPFs upon reaching retirement age by participants of such funds; approval of tax benefits for legal entities that will establish NPFs with a total number of participants exceeding 2,000 people; ensuring the overall development of the financial market of Ukraine to create additional financial instruments, in which NPFs can invest in order to further diversify investments and increase the profitability; de-shadowing of residents' incomes; improve the living standards of Ukrainians and so on.