Innovative approaches to reforming the pension insurance system of Ukraine: background of foreign countries

One of the most important tasks for any civilized state is to care for the elderly. The collection of various forms of financial support for individuals who have reached the retirement age set by law or have lost their ability to work through centralized insurance or budgetary funds has existed for a long time. This led to the creation of a pension insurance system covering all citizens. The primary goal of such a system is to prevent poverty due to the loss of working ability due to age. Reforming the domestic pension system has been ongoing for more than 20 years. However, it has not yet ensured the implementation of a three-pillar pension system in Ukraine. This requires a more detailed study of the successful experiences of other countries in this field. This is of particular importance in light of the upcoming post-war reconstruction of our country. All sectors of the economy will undergo reconstruction, and it seems entirely likely that radically new paths for rebuilding will be considered, especially for the population’s social insurance system. Modern pension insurance systems operating in different countries are not alike [1]. They differ in principles and organizational foundations of functioning, coverage of participants, taxation methods and rules governing pension contributions and payments. Each pension system depends on the level and stability of the country’s economic development, traditions, social security experience, labor motivation system, tax, and labor legislation. The article is dedicated to analyzing pension systems in industrially developed countries. Studying the experience of such countries is important for Ukraine due to the necessity of creating an efficient national pension system. The article explores the current challenges and opportunities for reforming Ukraine’s pension insurance system using innovative approaches. Particular attention is paid to analyzing the experiences of foreign countries that have successfully reformed their pension systems and introduced modern pension management methods. In light of rapid demographic aging and increasing financial pressure on pension funds, the article justifies the need to transition to a multi-tiered pension insurance system.