Voluntary Private Pension Reform in Georgia: Analysis of Impact on Employers and Employees

The main objective of the research is to study the challenges of the voluntary private pension schemes’ reform in Georgia and its impact on the economy. The paper presents a review of the scientific and analytical literature, the legislative and regulatory base of the Georgian pension system, and the main directions of the pension policy. Also, statistical data were studied in order to make a quantitative and qualitative analysis and evaluation the pension reform. The purpose of the article is to focus on the impact of the reform on employers and employees in Georgia. The development of voluntary private pension schemes is important for the establishment of a multi-pillar pension system in Georgia. Although there is potential for the development of voluntary private pension schemes in Georgia, at the initial stage of the reform, these schemes will be available mainly to representatives of large businesses and, accordingly, to high-income employees. As a result, low- and middle-income workers and small and medium-sized enterprises remain neglected. The mentioned factor should especially influence the state policy in order to facilitate the dynamic development of voluntary private pension schemes in Georgia.