Raising Retirement Age Will Increase Social Tension - Expert

The retirement age is determined on the basis of the average age. According to international standards, after retirement people should be able to receive a pension for not less than 12 years. In an interview with Turan this was said by the economist Rovshan Agayev,

In the developed countries, including Japan, the average life expectancy is 80-83 years. Therefore, the retirement age is 65-67 years there.

“Azerbaijan also plans to raise the retirement age to 65 for both men and women. According to official statistics, the average life expectancy for men is 72 years and for women it is 75. According to UN estimates, the average life expectancy in Azerbaijan is even less - 70 years. Therefore, the standard in Azerbaijan about getting a pension for at least 12 years will not be met,” the expert said.

In Russia, the average life expectancy is 70-72 years, too, but there the retirement age for men is 60 years and for women it is 55, Agayev stressed.

He believes that raising the retirement age to 65 years will negavely impact the demographic situation in the country and will have a social impact.

In particular, people who are 60 or more years old can hardly find jobs. Therefore, the number of unemployed without any income wil rise.

According to Agayev, raising the retirement age is the authorities' refusal to take the load and the social problems of older people. This, in turn, will lead to increased poverty in the country.

Referring to the economic reasons for this situation, Agayev reminded of the completion of the oil boom period and the occurrence of post-oil era.

 “The non-oil sector generates only a very small part of the state budget and the social fund. Therefore, the authorities seek to throw off the load to families of the citizens,” Agayev said, adding that this will lead not only to an increase in poverty, but also increase social tensions. He also recalled that after the two devaluations of the national currency, the authorities have not carried out indexation of wages and pensions. -03D-

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