Uzbekistan proposes to raise retirement age

The current pension system in Uzbekistan needs to be reformed to ensure medium-term stability and decent benefits for pensioners, according to the conclusion of an International Monetary Fund (IMF) mission to the country.

According to the IMF, this includes:

- gradual increase in the low retirement age;

- increasing the standard contribution rate while gradually abolishing preferential contribution rates established for certain categories of organizations;

- calculating the amount of pension benefits based on average earnings during employment;

- can be achieved by introducing an automatic price index-based pension indexation mechanism.

The fund argues that any social benefits intended to reduce poverty in old age should be strictly targeted. They should be determined on the basis of a needs assessment, financed from the state budget, and managed in a coherent manner with other social support measures to avoid duplication.