The basic pension amount can only increase if the retirement is postponed, as explained by the Pension Fund of Ukraine regarding the calculation of supplements for work beyond retirement age.
Increases in pension payments are possible only under certain conditions. For each full month of additional insurance experience gained after reaching retirement age, the pension may rise by 1% of the minimum pension for the person's age.
If a Ukrainian postpones retirement by one year, their pension payments may increase by 1%. If the delay is two years, the pension could rise by 2%.
According to Article 28 of the Law of Ukraine "On Mandatory State Pension Insurance," for each full year of insurance experience beyond 35 years for men and 30 years for women, the age pension payment increases by 1% of the calculated pension amount.
However, this increase cannot exceed 1% of the minimum pension for old age (equivalent to the subsistence minimum for individuals who can no longer work).
The pension supplement for longer service is only applied if the individual chooses to retire later than the legal retirement age.
The longer the delay, the greater the increase in pension payments. This mechanism encourages people to continue working and to postpone their retirement in order to receive higher monthly benefits.