Uzbekistan Announces Pension System Reform and Potential Increase in Retirement Age
Uzbekistan is taking proactive steps to reform its pension system, with the establishment of a working group tasked with drafting a comprehensive concept for modernizing the state pension provision. Led by Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov, the group includes key figures from various ministries and agencies, as well as experts from international organizations such as the IMF, ADB, and ILO.
The primary objectives of the reform efforts include analyzing the current pension system, identifying shortcomings, and proposing solutions to ensure long-term sustainability. Social justice and international best practices will be key considerations in strengthening the system to adapt to the evolving population and labor market.
Engagement with the public through media, social networks, and surveys will be critical in gathering input on the proposed reforms. This initiative comes in response to recommendations from the World Bank to gradually raise the retirement age to 65, starting in 2025, to manage demographic pressures and ensure financial stability.
With only 38% of the population currently covered by the pension system, challenges such as high levels of informal employment and a disparity between contributions and benefits need to be addressed. The proposed pension reform is essential for ensuring the financial sustainability of Uzbekistan’s pension system and public finances in the long run.
By involving both local and international expertise, Uzbekistan aims to create an equitable and adaptable system that meets the country’s future needs. The concept for reform is expected to be presented to the Presidential Administration by March 1, 2025, marking a significant milestone in the country’s efforts to modernize its pension system.
