How to save for retirement on your own: how much to put aside each month

What the state pension depends on

An old-age pension in Ukraine's pay-as-you-go system depends on two things: your insurance experience (how many years the single social contribution, ESV, was paid for you) and the salary on which it was paid. The longer the record and the higher the official salary, the larger the pension.

The experience requirements rise every year. According to the Pension Fund of Ukraine, retiring at 60 required 31 years of insurance experience in 2024, and the requirement grows by 12 months every year, reaching 35 years in 2028. So in 2026, retiring at 60 takes 33 years. People with less experience retire later, at 63 or 65, and at 65 the minimum requirement is 15 years.

The pay-as-you-go system runs on contributions from people working today. The size of a future pension also depends on government indexation decisions and on the ratio of workers to pensioners. So your own savings do not replace the state pension; they are insurance in case it is not enough.

How much you need: start from the income you want

Start with a question: how much money a month do you want on top of the state pension, and for how many years? Everything else follows from that.

Say you want an extra UAH 10,000 a month in today's money for 20 years, from 60 to 80. If you simply keep the money under the mattress, you need 10,000 × 240 = UAH 2,400,000, and in prices at the time you retire, not today's.

If the savings earn interest that at least slightly outpaces inflation, you need less: the remaining balance keeps earning while you draw it down.

Why we calculate in “today's money”

In 25 years, UAH 10,000 will buy much less than it does today. Rather than guessing future inflation, it is easier to calculate everything in today's prices and use the real return instead of the nominal rate: how many percent faster your savings grow than prices. How to calculate it is explained in our article on inflation: for example, a deposit at 15%, after 23% tax and with 8% inflation, gives about 3.3% real return.

How much to save each month

Now the key part: how much to save to have that UAH 1,976,740 in today's money by 60. The answer depends heavily on when you start.

The gap between starting at 30 and at 50 is almost fivefold in the size of the contribution. And you put in more of your own money too: UAH 1,025,280 starting at 30 against UAH 1,610,880 starting at 50. For the younger saver, compound interest does the rest.

Look at the last column: starting at 50, even a high return barely helps, because interest simply doesn't have enough time. Starting at 30, the gap between the cautious and the bold scenario is UAH 2,000 a month.

Where to keep retirement savings

Retirement money is the longest-term money of your life, so three things matter: safety, after-tax return and the ability to leave it alone for decades.

Deposits and savings accounts

The simplest option, but 23% tax is withheld from deposit interest, and the real return often barely beats inflation. For a retirement goal, a deposit works as the safe part, not as the main engine of growth. You can calculate after-tax income in the deposit calculator.

Government bonds (OVDP)

For individuals, income from Ukrainian government bonds is not included in taxable income, so at the same rate they pay more than a deposit. You can buy bonds with different maturities as a “ladder” and reinvest the coupons. More on the difference in “Deposit or government bonds”.

Private pension funds and investing

Private (non-state) pension funds and funds that invest in stocks and bonds can deliver higher returns over the long term, but without guarantees: their value fluctuates. Before trusting your money to any company, check it in the registers of Ukraine's National Securities and Stock Market Commission (NSSMC) and read carefully what fees it charges. A difference of 1-2% a year takes a noticeable part of the result over 30 years.

Step by step

1. Emergency fund first. Without a reserve of 3-6 months of expenses, the first crisis will force you to take out your retirement money. How to build one is explained in our article on the emergency fund.
2. Close expensive debts. A loan at 30-40% a year eats more than any savings will bring.
3. Check your insurance record in your Pension Fund account and make sure your salary is official: the state part depends on it.
4. Set a goal: how much a month and for how many years. Work out the capital and the monthly contribution as in the examples above.
5. Automate the contribution on payday into a separate account you don't use for spending.
6. Review the plan once a year: raise the contribution by inflation and check that your savings really grow faster than prices.

Common mistakes

• Saving “some day later”. Starting at 40 instead of 30 almost doubles the contribution you need, and starting at 50 instead of 40 makes it 2.5 times larger.
• Counting in nominal figures. A million in 30 years is not a million today. Calculate in today's prices or account for inflation.
• Keeping everything in one place. Spread large sums between instruments and banks so each deposit fits within the Deposit Guarantee Fund's guaranteed amount.
• Believing promises of guaranteed high income. This is especially dangerous for retirement money: capital lost at 55 can no longer be rebuilt.
• Taking money from the retirement account for current needs. That is what the emergency fund is for. Every withdrawal takes both the amount and all future interest on it.

In short

• Ukraine's state pension depends on insurance experience and the salary with ESV. In 2026, retiring at 60 takes 33 years of experience, in 2028 it takes 35.
• An extra UAH 10,000 a month for 20 years takes about UAH 2 million in today's money.
• At a 4% real return, that is UAH 2,848 a month starting at 30, UAH 5,390 at 40 and UAH 13,424 at 50.
• Calculate in today's money and raise your contribution by inflation every year.
• First an emergency fund and paying off expensive debt, then retirement savings in a separate account.

Sources

1. Pension Fund of Ukraine - old-age pensions: insurance experience requirements (in Ukrainian)
2. National Bank of Ukraine - comment on inflation in September 2026 (10.0% year on year) (in Ukrainian)
3. State Tax Service - new tax rates on deposit interest for individuals (in Ukrainian)
4. Diia - Military bonds: face value, how to buy, taxation of income (in Ukrainian)
5. NSSMC (Ukraine's securities regulator) - how to check a company against the Commission's registers

The calculations in this article are illustrative: returns are assumed and fixed, and taxes and fees are not counted separately. Actual results depend on the instruments, rates and inflation. This article is not financial or investment advice.