The creation of a non-state (private) pension fund in Azerbaijan has caused widespread debates among the population.
Oku.Az It is reported that in this regard the scientific economist, deputy Vugar Bayramov, tried to answer citizens’ questions on his social network account.
It should be noted that, according to the Ministry of Labor and Social Protection of the Population, more than 20 regulatory legal acts on the creation of non-state (private) pension funds are being prepared.
So, what does the creation of private pension funds promise to citizens?
Vugar Bayramov stated that in most developed countries, citizens use private pension funds very intensively:
“A private pension fund allows citizens to receive pensions not only from the state, but also from a private fund when they reach retirement age. This, of course, leads to an increase in the amount of the pension. In this context, A similar practice is applied in Azerbaijan. If a private pension fund is created, the citizen when he retires, if his pension is 500 manats, will have the opportunity to receive, for example, 300 manats as a result of his payments to the Fund. .private pension fund Of course, the amount of pension paid by the private fund will depend on savings. In addition, the reliability of the private pension fund is also very important, because if such funds are created, then they will be managed with manats. It would be advisable to implement indexation of the funds collected there and insure exchange rate risks. Therefore, it is important to develop and present the mechanism in a more advanced way. It should be noted that the provision of pensions through private funds is a widespread practice in. the world. Currently, these funds operate in Germany, Great Britain, Ireland, Türkiye and other countries.
