BUSINESS
Georgian Pensioner: One of the Poorest Pensioners?!
01 December, 2011

Georgia has about 700 thousand pensioners. Minimum pension is 100 Lari. Since 2003, pensions were raised seven times in Georgia but still failed to reach the subsistence level. The recent Governmental initiative however tries to mend the issue by raising pensions for people aged 67 and over up to 140 Lari payable from 2012 onwards. We decided to compare minimum or average pensions in the post-Soviet countries. To this end, we converted every figure from its respective currency into Lari:

1.

   Estonia - 660 Lari

2.    Kazakhstan - 585 Lari

3.    Latvia - 550 Lari

4.    Lithuania - 453 Lari

5.    Russia - 438 Lari

6.    Azerbaijan - 303 Lari

7.    Ukraine - 232 Lari

8.    Belarus - 185 Lari

9.    Turkmenistan - 171 Lari

10.    Armenia - 129 Lari

11.    Georgia - 100 Lari

12.    Moldova - 93 Lari

13.    Uzbekistan - 82 Lari

14.    Kyrgyzstan - 72 Lari

15.    Tajikistan - 27 Lari

 

Ioseb Archvadze, economy expert: “a pension of a regular pensioner constitutes only 70% of official subsistence rate. This monthly 30% deficit adds up to annual GEL 500 “shortage”. Therefore, whatever the increases, pensions continue to lag behind the limit of the minimum living.”

Vazha Beridze, economy expert: “the pension age starts quite late in Georgia. It’s 60 years for women and 65 years for men. When the minimum pension is mere 100 Lari and it’s not aided with any extra allowance to approach the official living minimum of 156.2 Lari, there is no point in even touching the question of cohesion in social policy. We love to draw parallels between us and our enemy – Russia. Of course, Russia is endowed with natural resources but when we still insist to compare our  country with it, we have to study respective social aspects as well. In this regard, you can’t help noticing the Russian practice of tying the pension to the living minimum. That is, pensions there never sink below the subsistence level. Moreover, there is regular indexation that balances inflation. As for Georgia, there is no parallel to the Russian model.”

Print