Regulation of Cumulative Pension System and Challenges in Georgia

Abstract

Implementation of successful economic reforms is an important priority for economic stability in Georgia. An important element of economic stability and economic growth is provided by the reform of the mandatory accumulated pension system, which started in Georgia in 2019 and is being successfully implemented to this day. But, the problem is that the implementation and regulation of any long-term and large-scale reform faces certain challenges that require a deep analysis of the reform and the development of effective development regulation mechanisms. Due to the low investment culture of the society, the reform of the cumulative mandatory pension system has great social importance and is characterized by high public interest. In addition to the fact that the reform in the long term ensures financial stability of people at retirement age and happy old age insurance, the investment capital base will be an important factor for the development of the capital market in Georgia and will contribute to the significant acceleration of the economic growth of Georgia, the long-term growth of foreign exchange resources in the country and the activation of financial markets. The beneficiary of the said development will be every citizen of Georgia, regardless of whether he participates in the accumulated pension scheme or not.