60 AND ABOVE
"Pension reforms does not envisage changes in the pension age. The pension age will be left untouched during the discussion of the new law on вЂњPension provision citizensвЂќ.
By such statements the State Fund for Social Security (SFSS) of Azerbaijan tries to calm the population, though the pension age in the country will be increased to from 62 to 65 for men, and from 7 to 62 - for women.
In general, the actions on increase of age sense while retirement are not so popular among population and results in rise of social dissatisfaction and mass public disorder. Azerbaijan, undergoing a flow of pension reforms, would not favor incite people against the reforms in pension system.
The researches show many countries gradually move the pension age, as the public tries to become older and the number of pensioners exceeds the number of able people. Thus, the upper limit in Russia is equal to 55 for women and 60 for men, while in the UK - 60 for women and 65 for men, in the United States, Germany, Canada, Spain вЂ" 65 for women and men.
However, this is a political resolution with psychological basis, while its implementation in Azerbaijan is possible through an agreement with the society. For many families in Azerbaijan with pensioners pensions benefits are the only source of вЂ�liveвЂ™ moneyвЂ™.
In compliance with the official statistics, as of results of the first quarter of 2005 there will be 1,341,400 pensioners in the country, including 759,200 people on pension, 255,500 people вЂ" for disability, 132,300 people вЂ" for loss of bread-winner, 194,400 people for probation period and social pensioners.
There are ideas in Azerbaijan that if pension age is increased, the majority of men will either unable to live till pension age, or will receive it only for to or three years. Meanwhile, the State Statistics Committee of Azerbaijan the average lifespan in the country is 72.4 (69.6 вЂ" for men and 75.2 вЂ" for women).
Taking in to consideration the fact that Azerbaijani citizens start working earlier than in the West, rest less and seldom visit doctors, their health leaves much to be desired. As a result of increase of pensions age we will see a category of people, who are not employed because of age and market requirements, and do not have a right for pension.
The new law вЂ�On Pension ProvisionвЂ™ defines the average period of pensioner 12 year in 2006. By 2008 the figure is expected to reach 18 months, as the period is increased 6 months a year on the base of demographic accounts. So, if pension age is increased the period from the retirement till death.
It means, the sum accumulated in the account of a pensioner is divided into less months and benefit grows. However, it will concern only the future generation, and people are sure the current age sense is the most optimal one and should not be changed either for men, or women.
The reports in increase of pension age are not only rumors, but based on last year statements by Salim Muslimov, the chairman of the State Fund for Social Security (SFSS) pension age for women will be increased since 1 January 2005. The statistics clarifies that women receive benefits for approximately 19 years and men вЂ" 7 years.
According to Muslimov, it is not right and the rights of men and women should be equaled. The government is keen on making the age sense equal for men and women. It is first of all is required in an effort to reduce the burden of the public budget.
As the calculations made by Russian experts, concerned on the identical problem in their country, testify, such step does not bring positive results for financial stability of the pension system and increase of incomes.
Thus, in accordance with the calculations by the representatives of the pension administrations of the country increase of pension age for 5 years will increase the profitability of the system by 10-12%.
In Azerbaijan over 1trln manats is directed at increase of pensions and benefits of 1,337 million pensioners.
There are also positive arguments on increase of pensions age. Thus, the increase of pension age tones up the co-efficiency of burden. The correlation between the social insurance and pensioners is 1:1 and only 35% of all 3.8 million people who are referred to as вЂ�employedвЂ™ are payers of the SFSS. The number of pensioners is the same.
However, the calculations by the government shows in this century the demographic situation might aggravate, as there will be a sharp rise in the number of pensioners, and respectively, the sum required for payment of pensions. Without legalization of shadow jobs and cancellation of вЂ�envelopeвЂ™ system of salary payment in the enterprises will hardly enable to provide deserved benefits for pensioners.
To consideration of those who want to retire or just live for own pleasure it should be noted in accordance with econometrical laws the pension sense is never increased simultaneously.
The process extends for at least several years: every year the figure is increase three times, or as maximum 6 months. Thus, 10 years are required to increase the pension age by 3 years. By the moment the pension age is increased, the passions will weaken and it will be accepted as a fact.