IMF recommends Uzbekistan raise retirement age

The International Monetary Fund (IMF) has stated that Uzbekistan’s current pension system requires reform to ensure its sustainability in the medium term and to provide adequate pensions. This was outlined in a press release published by the IMF on June 24.

The IMF’s recommendations include:

•  A gradual increase in the retirement age;
•  A gradual increase in the standard contribution rate;
•  Phasing out preferential contribution rates for certain types of organizations;
•  Calculating pension amounts based on average earnings over the entire working life;
•  Introducing automatic pension indexation based on inflation.

In addition, the IMF recommends that any social pension aimed at reducing poverty in old age should be means-tested, financed from the state budget, and integrated with other social assistance programs to avoid duplication.

According to the IMF, the government of Uzbekistan plans to develop a pension reform project in 2025. A draft concept of the reform is expected to be submitted to the President by September.

For reference, the current retirement age in Uzbekistan is 60 for men (with at least 25 years of work experience) and 55 for women (with at least 20 years of work experience).

It is worth noting that it was previously reported that in Uzbekistan, age and disability pensions will be assigned proactively, without requiring a separate application. Additionally, starting from October 1 of this year, services related to pension provision and pension payments by JSC "People's Bank" will be carried out through biometric identification (Face ID) and electronic signatures.