Private pension system: resilient in spite of the recession
With the establishment of a privately funded pension system in 2019 Georgia established a second pillar in its pension system alongside the existing basic pension. This was a step owards diversifying sources of retirement income, and boosting institutional investment in the local capital market. Steady participation rates and investment performance suggest the new system can be resilient in the face of the ongoing recession and spike in unemployment. The immediate challenge will be to specify the investment policy and diversify the asset allocation, and to widen the appeal of the system. As regards the asset allocation, the issuance of inflation-linked bonds by the government would be of interest for the pension agency.