Formation of Pension Payments for Persons Discharged from Military Service Using Alternative Financial Instruments

The traditional model of budgetary pension provision in Ukraine is gradually losing its ability to meet the challenges of financial sustainability in the conditions of a war economy, necessitating the study of the possibilities for attracting alternative financial instruments, in particular capital market instruments, accumulative mechanisms, and non-state pension provision. The article aims to analyze the mechanisms for integrating exchange-traded instruments into the pension systems of military personnel in the United States and Great Britain, and to determine the possibilities of adapting their experience to Ukraine to form an effective mechanism for pension payments to former military personnel. The research methodology includes analysis and synthesis, comparative legal and comparative methods, statistical and economic analysis, and modeling and scientific forecasting. The results of the study indicate that although the stock markets of the USA and the UK experienced a short-term negative reaction in 2022, associated with the war in Ukraine, they subsequently recovered market capitalization, indicating their high adaptability and potential suitability for long-term placement of pension savings. Based on a comparative analysis of the pension provision models for US and UK military personnel, the author identified key elements suitable for implementation in Ukrainian conditions. The most promising for adaptation is the American mixed pension model – Blended Retirement System (BRS), which combines a guaranteed state component with an accumulative mechanism for investing pension funds through capital market instruments. The use of accumulation mechanisms enables capitalizing on pension assets, partially protecting funds from inflationary depreciation, and reducing the long-term fiscal burden on the state. The study provided conceptual directions for reforming the domestic pension provision mechanism for persons discharged from military service. The approaches proposed in the article can be used to develop a mechanism for the phased introduction of the accumulative component of military pensions, diversification of their financing sources, and the reduction of the Pension Fund of Ukraine's budget deficit.