THE PENSION SYSTEM REFORM IN GEORGIA: ACHIEVEMENTS AND CHALLENGES

Mirza  Khidasheli; Nikoloz  Chikhladze

doi:10.35945/gb.2018.06.022

Authors

Mirza Khidasheli Doctor of Business Administration, Associate Professor, Kutaisi University, Georgia Author
Nikoloz Chikhladze Doctor of Economic Sciences, Professor, Akaki Tsereteli State University, Kutaisi University, Academician, Academy of Economic Sciences of Georgia, Georgia Author

DOI:

https://doi.org/10.35945/gb.2018.06.022

Keywords:

PENSION SYSTEM, PENSION REFORM, ACCUMULATIVE PENSION

Abstract

The study showed that reform is effective for young people, whose total duration of participation in the pension scheme is 40 years. In this case, the pension scheme provides a high replacement rate, which is not possible for persons whose participation in the pension scheme is not more than 20 years. An obstacle remains the pressure of the pension system on the State budget. Despite the establishment of a funded pension system, the old-age pension still remains accessible to participants of the scheme, which, as noted by the authors of the reform, by 2030, will have a significant share in the structure of the State budget spending.