890 mln GEL accumulated in pension fund as of August 3, 2020

About 890 million GEL ($288.49m/€244.94m) has been accumulated in the pension fund since August 3, 2020, of which 1.7 per cent was invested in term deposits, 25.2 per cent in interest-bearing accounts, and 73.1 per cent in certificates of deposit, says the Georgian Pension Agency.

Currently, 100 per cent of pension assets are denominated in the Georgian national currency, the lari. The annual effective return on pension assets is 11.4 per cent, which is twice as much as the annual inflation in the country (5.7 per cent as of July). The interest accrued on pension assets is 68 million GEL", says the Pension Agency.

• Georgia’s new pension system comes into play

The employed in Georgia transfer money to the country’s pension savings system which was launched on January 1, 2019.

The accumulated pension system is mandatory for legally employed people under 40, meaning they will be enrolled automatically. For the self-employed and those above the age of 40, enrolment in the programme is voluntary.

The pension savings system applies to Georgian citizens, foreign citizens living in Georgia with permanent residency in the country and stateless persons who are employed or self-employed and receive an income.

This system applies to employees of both the public as well as private sectors.