232 mln in Georgia’s accumulative pension system in 150 days
So far 51,870 private companies and 793,029 individuals are involved in the accumulative pension system. Photo: Nino Alavidze/Agenda.ge.
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A total of 232 million GEL (about 83.30m/€74.42m) has been accumulated in Georgia’s accumulative pension system in the first 150 days of operations of the Georgian Pension Agency, the agency that manages the pension system.
More about Georgia’s pension system can be found here.
So far 51,870 private companies and 793,029 individuals are involved in the accumulative pension system.
Director of the Georgian Pension Agency Levan Surguladze said that in 5-6 years it is expected to accumulate about 5 billion GEL (about $1.80b/€1.60b).
In two years we expect to accumulate 1.5 billion GEL in the pension system, in six years – about 5 billion GEL, 80% of which should benefit the country’s economy”, said Surguladze.
Surguladze says the goal of the reform is to ensure financial support for citizens of retirement age, while the second goal is the development of the capital market.
Several major changes came into play on January 1, 2019. One of the changes is the accumulated pension system – the new programme is mandatory for legally employed people under 40, meaning they will be enrolled automatically. For those above the age of 40, the programme is voluntary, as it is for self-employed citizens.
This month, the employed in Georgia will transfer money to the country’s pension savings system for the first time, as it was launched on January 1, 2019. Starting from January 1, 2019 the accumulated pension system is mandatory for legally employed people under 40, meaning they will be enrolled automatically.
A total of 747,774 employed people in Georgia are involved in the accumulative pension system, while both pension contributions and interest amounts total 174,047,572 GEL (about $64.46m/€57.31m), says Director of the Pension Agency Levan Surguladze.
The parliament of Georgia approved a law on an accumulative pension system yesterday, which is part of a larger pension reform initiated by the Georgian government. The government plans to launch a supplementary programme alongside the currently existing universal basic pension which amounts to 180 Gel.
The Georgian Pension Agency’s Investment Board has elected a new chair – Olivier Russo. His first deputy will be Jean-Frederick Polsen, announced the director of the pension agency, Levan Surguladze.