Changes are expected in the pension system

The pension system in Uzbekistan is anticipated to undergo reforms, according to the Strategic Reforms Agency under the President.

It has been noted that Uzbekistan's pension system relies on a defined payment structure based on mandatory contributions, with increasing support from the state budget. Over the past decade, the Pension Fund's income has grown by 3.4 times, while its expenses have surged by 5 times. Since 2020, state budget transfers have consistently been used to finance pension payments.

In 2022, the state budget transfer amounted to 11 trillion soums (24.7 percent of total costs), and for 2023, 15 trillion soums (29 percent) are projected. By 2030, the transfer is expected to reach 38 trillion soums.

In the "Allianz Pension Ranking 2023," Uzbekistan ranked 71st out of 75 countries. Kazakhstan ranked 34th, Russia 37th, and Turkey 59th. This ranking is based on three sub-indices: basic conditions, stability, and the sustainability of the pension system. The ratings range from 1 to 7, with 1 being the highest. Uzbekistan's overall rating was 4.5.

At the beginning of this year, Uzbekistan introduced a procedure to count citizens aged 16 and above in the accumulated pension system. Additionally, pensions have been increased as, starting May 1, 2024, the minimum consumption expenses have been set at 648,000 soums by a presidential decree.