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Yield on pension assets exceeds annual inflation in Georgia

Finance Materials 8 September 2020 18:18
Yield on pension assets exceeds annual inflation in Georgia

BAKU, Azerbaijan, Sept.8

By Tamilla Mammadova – Trend:

The yield on pension assets exceeds the annual inflation by 2.3 times in Georgia, said Goga Melikidze, a senior officer of the Pension Agency’s Investment Board, Trend reports via Georgian media.

“We have placed pension assets into the instrument with an annual effective 11.1 percent and the figure exceeds the annual inflation by 2.3 times (4.8 percent as for August 2020) and the laris profitability indicator by 1.3 times”, Melikidze noted.

Pension savings have already earned a yield of 79.5 million laris ($25.8 million), he added.

Every month more than 9,000 citizens join the contributory pensions scheme, the Pension Agency officials noted.

The employed in Georgia transfer money to the country’s pension savings system which was launched on January 1, 2019.

The accumulated pension system is mandatory for legally employed people under 40, meaning they will be enrolled automatically. For the self-employed and those above the age of 40, enrollment in the program is voluntary.

The pension savings system applies to Georgian citizens, foreign citizens living in Georgia with permanent residency in the country, and stateless persons who are employed or self-employed and receive an income. This system applies to employees of both the public and private sectors.

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