Personal Pension Strategy

How much to save monthly for your target retirement income

Goal calculator

Target retirement income, UAH/mo

Years to accumulate

Expected return, %/year

Monthly contribution needed: 7 901 грн

Required capital: 6 000 000 грн — Capital generating the target income under the 4% rule (4%/yr withdrawal without depletion)

Three pension pillars in Ukraine

Pillar I — pay-as-you-go system

PFU service pension — baseline, but often insufficient for a decent life

Pillar II — funded system

Being introduced: mandatory savings on a personal account

Pillar III — voluntary savings

NPFs, pension deposits, long-term savings agreements, government bonds, stocks — what you do yourself

Pillar III instruments

NPF — non-state pension funds; contributions up to 20% of income get a tax benefit
Long-term deposit agreement — up to 15 years with yield
OVDP government bonds — ~15–17% yield (military bonds)
ETF/stocks via a broker — highest yield over 20+ years
Tax credit: up to UAH 3,220/yr PIT refund on NPF contributions

Rough estimate ignoring inflation and taxes. At 15% (bonds) you need smaller contributions than at 8% (deposits) — but with different risks. Diversify: NPF + OVDP + market instruments.