00:00What do countries do where the pension system works better?
00:03They try not to put all their eggs in one basket.
00:06Part of their future retirement income comes from government benefits.
00:09Another part comes from savings built up by the worker and their employer.
00:13The funds are invested in profitable assets and generate income.
00:16This is a fundamental point, which is largely missing from public understanding in Ukraine.
00:21The most underestimated advantage of switching to a funded pension system,
00:24which politicians and populists won't tell you about,
00:27is that you can do more than stash your retirement savings under the mattress.
00:30If contributions are invested over decades, they can not only be preserved, but also grow.
00:35And if a person passes away, these funds are transferred to the family.
00:40By the way, in our public opinion poll,
00:42almost half of the people consider it fair to have a system where,
00:45in the event of premature death,
00:47contributors have the right to pass on the accumulated funds as an inheritance.
00:51The pay-as-you-go pension tier can remain a basic state guarantee.
00:54But alongside it, employer-sponsored and personal retirement savings should grow.
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