First investment made with accumulated pension in Georgia

The Pension Agency of Georgia has made its first large scale investment.

A total of 560 million GEL (about $200.75m/€180.57m) was made in deposit certificates of “high-rated Georgian commercial banks”.

A bank deposit is the least risky financial instrument. Also, negotiations are underway with several financial institutions”, said acting director of Pension Fund Giorgi Tchitchinadze.  

The Pension Fund announced that the money was invested at a high interest rate and its annual interest rate is 14.9 per cent instead of nine per cent. The investment period is five years.

Tchitchinadze said that once the investment period is over the investment of 560 million GEL will be doubled. 

The accumulated pension system came into play in Georgia in January 2019. It 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.