THE IMPACT OF DEMOGRAPHIC FACTORS ON THE REFORM OF PENSION SYSTEMS IN THE EU COUNTRIES AND UKRAINE
Abstract
The article examines the impact of demographic factors on the process of reforming the pension systems of the European Union countries and Ukraine. The key trends of demographic development are identified, including population ageing, declining birth rates, increasing life expectancy, and migration processes, which significantly affect the financial sustainability of pension systems. The experience of EU member states in adapting pension models to new demographic conditions is analyzed through measures such as raising the retirement age, introducing funded components, encouraging the participation of older individuals in the labor market, and diversifying sources of financing. Particular attention is paid to comparing the Ukrainian pension system with European practices and identifying its structural problems: the deficit of the Pension Fund, the high level of informal employment, and the insufficient development of the funded tier. The need for a comprehensive approach to reform is substantiated, one that aligns demographic, social, and economic policies, improves the mechanisms of solidarity and funded pension provision, broadens the base of contribution payers, and enhances financial literacy among the population. The research results can be used to develop an effective strategy for modernizing Ukraine’s pension system in accordance with demographic challenges and European social policy standards. The article proposes directions for further scientific investigation, including modeling the demographic impact on the long-term balance of pension systems and determining optimal reform parameters in the national context. Emphasis is placed on the importance of digitalizing pension processes and implementing modern information technologies to improve transparency and efficiency in contribution administration. The potential of social dialogue among the government, employers, and employees is revealed as a key factor in successful reform. The necessity of considering regional differences in demographic structure when shaping pension policy is underlined. It is concluded that ensuring the sustainability of the pension system requires not only technical changes in its mechanisms but also profound institutional transformations aimed at strengthening social solidarity and economic stability.
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