The Georgian Dream of Pension Reforms

Abstract

Although old-age benefits help to alleviate poverty in Georgia, the system does not satisfy its main stakeholders. Retirees believe that pensions are unfair and inadequate, while experts and governmental officials realize the growing burden of benefits for the country's public finances. The past experience of pension (non) reforms suggest that changes are sensitive to the government's capacity to reform, the fiscal health of the economy, political stability and the ideological preferences of the ruling elites. The transfer of power through parliamentary and presidential elections in 2012-2013 opened an opportunity for reforming the pension system based on broad public consensus and economic sustainability.