URGENCY OF PENSION REFORM IN GEORGIA

Abstract

The article discusses the urgency of pension reform in Georgia. The disadvantage of the existing pension model was its pressure on the state budget. At the same time, the recent demographical changes in Georgia revealed new challenges and put at risk the sustainability of the future state pension system; The previous pension system in Georgia would not have provided the old aged citizens with so called “Decent pension” that’s why there was an emergency of a new reformation. It is worth mentioning, that global aging is the history of world success. Nowadays people live longer. This is the triumph of social health security, shown up by establishing healthy life style, pharmaceutical market, generally citizens’ social-economic conditions and economic promotion as well. Aging process affects economic increase, formal and non-formal supporting system and mobilization of supporting resources for elderly citizens from the Government’s side. Nations should admit the global context of the problem, realize new demographic reality; However making some corrections in pension policy might be painful for elderly groups. Key words: Relevance of reformation, demographic changes, active aging, budget pressure, usefulness of the reform , rate replacement, accumulating pension system, pension indexation.