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The article is devoted to assessing the long-term sustainability of Ukraine’s pension system in order to determine the efficiency of its main function — protection against poverty in old age and income replacement in retirement. The method of calculating the Global Pension Index was applied, which was modified by the authors taking into account the peculiarities of the national labor market (labor migration, shadow employment, etc.). The long-term sustainability indicator is determined on the basis of 9 sub-indicators,which reflect the impact of demographic (life expectancy at state pension age, total fertility rate and old-age dependency ratio, labor force participation rate aged 55—64 or over etc.), structural (contribution of each level of pension system to ensuring the welfare of beneficiaries), economic (the level of private pension assets, expressed as a percentage of GDP, the level of the adjusted government debt and public cost of pensions, real economic growth) factors.The results showed that the sustainability indexof the pension system gradually increased during 2016—2020, reaching its maximum value at 45.29 out of 100 possible. This means that functioning of the pension system is not effective enough in terms of providing adequate income in old age. The disproportionate structure of the pension system, in which almost all the financial strain of paying benefits is concentrated in PAYG system, does not contribute to its sustainability, especially in the long term. Prospects for the development of Ukraine’s pension system are mainly related to the strengthening of private pensions: expanding the participation of the working age population in private pension plans, increasing the share of private pension assets in GDP, increasing protection of investors’ rights, stimulating labor force participation rate retirees. It was shown that GDP per-capita is weakly correlated with pension’s system sustainability. Therefore, economic factors do not have a decisive influence. [ABSTRACT FROM AUTHOR]