FINANCIAL CRISIS IS EXPECTED IN PENSION SYSTEM OF ARMENIA

Noyan Tapan
Feb 28 2007

YEREVAN, FEBRUARY 28, NOYAN TAPAN. A financial crisis is expected in
the pension system of Armenia. Aghvan Vardanian, the RA Minister of
Labour and Social Issues stated about it at the February 28 discussion
of the draft "On RA State Demographic Policy Conception." In his words,
people born during the years of the Great Patriotic War retire on a
pension, whose number is, naturally, small. In the Minister’s words,
such a number of pensioners will remain till 2015, after what the
number of retiring people will strictly increase, provided by increase
of births fixed in 50-60s.

It was also mentioned that the population’s aging process, provided
by strict fall of the level of birthrate and prevailing emigration
activeness of the population at the working age, greatly quickened
during the post-Soviet years. In 2006 the specific weight of the
population at the pension age grew in Armenia 3.6% compared with 1990,
making 12.7%. Whereas, this index must not surpass 9% in the conditions
of normal demographic development.