To earn a pension is a big problem, an expert

Baku/04.04.18/Turan: The latest pension reforms are aimed at strengthening the social security of the older generation. However, a number of parameters reduce access to pensions, said the expert of the Center for Economic and Social Development Rashad Hasanov said this in an interview with the "Çətin Sual" program (Difficult issue). In subsequent years, the average size of pensions, in comparison with previous years, will go down, since the basic system is liquidated and there is already no part to be financed from the state budget. The pension will be formed from personal savings of citizens. It should be taken into account that most of the citizens worked for many years without employment contracts, without social protection. Therefore, the amount of savings for this period at best will provide them with pensions at a minimum level of 110 manats. This despite the fact that the government itself defined the cost of living for the elderly at 144 manats. Thus, the minimum pension is 20% below the subsistence minimum.

In Azerbaijan, the period of increase in life expectancy fell on after 2000. So, in 2016 this indicator reached 75 years. The government responded fairly quickly to this, raising the retirement age. Therefore, it can be predicted that in the coming years, men will be able to retire at 72 years. This makes it unrealistic to implement the provision reflected in the legislation on the pension period of 144 months, the expert said. The authorities explain this by the desire of people to work. According to official statistics, in Azerbaijan the number of pensioners is 1,315,000, but only 110,000 of them work. When asked how people plan their old age in such a situation, Hasanov replied that if changes reduce and limit access to pensions, this is unacceptable. The pension legislation does not stimulate the collection of social protection and therefore annually from the state budget to the Social Insurance Fund are allocated amounts in the amount of 38-40%. In the future, it is necessary to expect the limitation of pension opportunities for the greater part of the working population, especially for 1,700,000 landholders in the region.

Will the unemployed receive pensions? Answering this question, the expert noted that this is a minimum pension of 110 manats. This is subject to 25 years of seniority and accruals to the Social Insurance Fund in the amount of 15,800 manats. The unemployed will be given the opportunity to receive old-age benefits - 55 manats. The exact number of unemployed in the country is unknown. According to official data, today it is 251 thousand people. However, in fact, there are many more. -03B-