Funded pension
three system levels, NPFs, contributions, risks — real saving instruments
Funded pension
Three system levels:
1st — pay-as-you-go (PFU, working now), 2nd — mandatory funded (not launched), 3rd — non-state pension funds (voluntary).
NPF:
Non-state pension fund: you or your employer contribute, the fund invests, pays out after 60.
Contributions:
Usually 2–5% of salary; employer may co-fund.
Investing:
NPFs invest in government bonds, deposits, bonds — returns usually low but it is an extra level.
Taxes:
Employer contributions within limits are tax-free; payouts are taxed on exit.
Choosing a fund:
Check the NSSMC license, history, admin fee (1–3% yearly), portfolio structure.
Risks:
NPF is not a deposit: no state guarantee, returns not guaranteed.
Practice:
The 2nd level is not launched in Ukraine — the only real funded instruments now are NPFs and individual pension contracts.