What is insurance experience in Ukraine?

Today we are going to look at a rather popular topic among Ukrainians, because since 2004, according to the Law of Ukraine "On Compulsory State Pension Insurance" insurance experience is accrued to those who pay monthly payments.

Concept and definition of insurance period

Insurance experience is a certain period of time during which a person has paid insurance premiums to the state.

Many people get scared when they hear this concept, because for them insurance is something complicated and incomprehensible. But we want to dispel this belief, because the insurance period can be equated to the unified social contribution. Anyone who pays the unified social tax in the amount of at least 22% of the minimum wage automatically accumulates this length of service for their future pension.

Work experience is a certain officially recorded period of time during which a person was officially employed. The main proof of work experience is your employment record book.

Is the insurance period credited in case of non-payment of the unified social tax?

During martial law, the government allowed individual entrepreneurs to avoid paying the unified social tax, and many people take advantage of this. However, it should be clearly understood that according to the law, pensionable service is only counted if you pay the unified social tax. Of course, you still have to live to see your pension, but you still need to think about the future.

Insurance experience in car insurance

In general, the insurance period is not only in the Pension Fund of Ukraine, but also in the insurance industry in general. After all, when you buy car insurance every year, you automatically extend your insurance experience. This indicator can affect the cost of certain insurance products, such as CASCO insurance. Because the more experience a person has, especially accident-free experience, the more favorable the company will be able to offer to protect your car.

Insurance period in the future

We all know that Ukraine's pension system is not perfect, and in the future we will definitely move to the European system of pension accumulation. And your pension and opportunities at retirement age will be calculated on the amount you pay throughout your life. And the more you save today, the more you will have in the future.