Why is this important
Private funds can lessen the strain on the state pension budget and enhance the financial stability of the system. This provides citizens with more opportunities for savings and flexibility — voluntary contributions made instead of, or alongside, mandatory contributions.
Such measures are part of a broader reform: digitalization of pensions, insurance experience, and increasing the retirement age.
What happened
- The Executive Director of the Extrabudgetary Pension Fund, Murodbek Atadjanov, stated that the regulatory framework will be established by 2027-2028 with the participation of the Pension Fund, the Ministry of Economy and Finance, the Central Bank, and the National Agency for Perspective Projects.
- Then, within the next two years after the creation of the base, it is planned to launch private pension funds directly;
- The International Consultative Council (ICS) recommended the adoption of a package of five laws on the pension system, including a clause on private pension funds based on the principles of voluntary contributions;
- The Strategic Reforms Agency stated that establishing a private sector in the pension system does not mean the abolition or replacement of state provision.
Context
- Uzbekistan’s pension system is currently facing demographic and financial challenges: population aging, increased life expectancy, and a burden on the state budget.
- the state is already considering raising the retirement age as part of reforms;
- also key areas of reform: digitalization of pension provision processes and the introduction of the concept of insurance experience — only for official employment.
