BASIC IMPERATIVES FOR MODELING PENSION PAYMENTS IN THE PENSION SECURITY SYSTEM OF UKRAINE

• Published in: Fìnansovo-kreditna dìâlʹnìstʹ: problemi teorìì̈ ta praktiki (Online) 2024-08, Vol.4 (57), p.262-273
• Main Authors: Вeridze, Tеtiana, Stolietova, Iryna, Kutova, Natalia, Korolenko, Olha, Galitsyna, Olha, Luniak, Iryna
• Format: Article
• Language: English
• Subjects: economic-mathematical model; indexation; inflation; pension payments; reform
• ISSN: 2306-4994; 2310-8770
• DOI: 10.55643/fcaptp.4.57.2024.4401

The purpose of the article is to research and analysis of the amount of indexation of pension payments related to inflationary processes. The object of the study is the state of pension provision in Ukraine. The subject of the study is the process of indexation of pension payments as a result of the implementation of social policy in Ukraine. An analysis of the history of the development and reform of pension provision in Ukraine was carried out. This allowed for a deeper understanding of the content of events related to the establishment of pension provision in Ukraine. The research methodology involves the synergy of mathematical methods of analytical geometry and economic-mathematical modelling. It is shown that the presence of inflationary processes in the national economy leads to the need to increase the pension provision of citizens. At the same time, the size of the increase in pension payments should be differentiated in order to ensure social "justice". The scientific task set in the article is to demonstrate a modern approach to choosing a strategy for implementing the state pension policy in Ukraine. As a result of the research, two models of appropriate indexation of pension payments in Ukraine are presented. The calculation made it possible to choose the most significant model. In the future, it is advisable to direct the research to the search for other more effective ways of indexing pensions. It is assumed that for this it is necessary to formalize the mathematical formulation of the problem of finding the optimal value of the index of pension payments as extreme, taking into account the necessary restrictions. A scientific novelty in solving this issue is the receipt of practically significant recommendations regarding the indexation of pensions. The practical significance of the obtained results lies in the elimination of social defects in the indexation of pension payments. Further research should be directed to the search for rational solutions that will stimulate the creation of an effective pension system in Ukraine.