Pension system from state pension to private accumulation system

Abstract

Despite of the fact, that Georgia is developing its market economy with a normal growing rate, it has never had such pension system that could give enough pensions to pensioners for stable life conditions. The work is focused on Georgian cumulative pension schemes. We review what problems and shortcomings are in Georgian private pension schemes than we try to distinguish and pick up main points. The history of private pension is derived from the establishment of insurance companies, but due to the difficult economic conditions, it has not been able to develop. The current reform in the pension system will be the mechanism for mitigating the economic and demographic burden of the country.