MODERN ISSUES OF NON-STATE PENSION INSURANCE IN THE CONTEXT OF EUROPEAN INTEGRATION

Abstract

The article examines the current state, key challenges, and prospective directions for the development of the pension system in Ukraine under conditions of European integration, demographic changes, and military-economic challenges. Special attention is given to the analysis of the three-tier pension model defined at the legislative level, with an emphasis on the actual state of its implementation. It is established that Ukraine’s pension system is predominantly based on the solidarity pillar, while the funded pillar remains at the stage of regulatory introduction, and the system of non-state pension provision is developing in a limited manner. The study analyzes the main systemic risks affecting the pension system, including demographic ageing, migration processes caused by armed aggression, a high level of economic informality, the deficit of the Pension Fund of Ukraine, and insufficient pension benefit levels. It is demonstrated that these factors create long-term structural vulnerabilities within the solidarity-based model and necessitate its comprehensive modernization. The article also reviews the experience of European countries in pension provision, particularly the Netherlands, Sweden, and Germany, where multi-tier pension systems combining state, occupational, and private savings mechanisms are effectively implemented. The importance of institutional trust, financial discipline, and demographic adaptability is emphasized as key principles of efficient pension administration. Based on the conducted analysis, strategic directions for reforming Ukraine’s pension system are identified, including the introduction of a mandatory funded pillar, development of non-state pension provision, digitalization of administrative processes, improvement of financial literacy among the population, and harmonization of national legislation with European social protection standards. It is concluded that the transition to a multi-tier pension model is a necessary condition for enhancing the financial sustainability of the system, ensuring adequate social protection for citizens, and aligning Ukraine’s pension policy with modern European approaches. The findings of the study may be used for further improvement of public policy in the field of pension provision and for the development of regulatory and legal acts.