What will change in Azerbaijan's pension system?

The topic of pensions affects each of us, as time passes so quickly and the silver age comes sooner than expected. Currently in Azerbaijan, there is discussion not only about equalizing the age threshold, but also about the possibility of introducing new criteria for earlier retirement, writes the "Caspiy" newspaper.

From July 1, 2026, the retirement age for women in Azerbaijan will increase by six months to 65 years, which means equalizing the age threshold for men and women. For men, the retirement age was increased by six months annually from July 1, 2017 to July 1, 2021, and for women, it's on the final stretch.

Two sides of the same coin

For the state, equalizing the retirement age of men and women is primarily related to ensuring the sustainability of the pension system. This approach makes calculations more predictable and allows for more efficient management of the budget burden in the context of demographic changes.

An additional argument "for" is the principle of gender equality. In an insurance pension model, equal rights to participate in labor activities also imply equal periods for forming pension capital. International practice shows that earlier retirement for women is not always in their interest. They don't have time to accumulate pension capital comparable to men, which determines the size of the pension.

However, there is another side to the coin: in practice, it is women who more often take on the main burden of caring for children, elderly relatives, and managing the household. Single mothers, those with many children, and those raising children with disabilities face an increased long-term burden. In such conditions, extending work activity to 65 years can be perceived not only as an additional opportunity but also as a serious social challenge. This strengthens the arguments for a more flexible and differentiated approach to retirement age.

A more flexible model is needed

As the equalization of retirement age in the country is being completed, the issue of a differentiated approach to retirement taking into account social circumstances is being increasingly discussed. Vugar Bayramov, a member of the parliamentary committee on economic policy, industry, and entrepreneurship, is confident that in the future, it is possible to implement a more flexible model that corresponds to the practice of developed countries.

This involves considering not only quantitative parameters - age and insurance experience - but also qualitative social indicators. In particular, the deputy proposed considering the possibility of earlier retirement for single women, as well as reducing the retirement age depending on the number of children. According to him, relevant proposals have already been sent to specialized government structures, and this will expand social guarantees for women, taking into account various life circumstances.

Let's recall that certain social and professional differentiation in Azerbaijan's pension system already exists. Early retirement is possible for workers engaged in harmful and heavy industries, pilots, as well as persons caring for elderly people and persons with disabilities. Women who have given birth to and raised five or more children until the age of eight can also retire five years earlier. But the need to expand the criteria has been discussed for a long time. Today, few people decide to have five children, so it would be fair to provide pension benefits to those who have at least three. One option is to gradually reduce the retirement age by one year for each child, starting, for example, from the third. This approach is considered not only as a measure of social support but also as a tool of demographic policy.

International experience shows that such mechanisms are widely used. For example, in Russia, with a general retirement age for women of 60 years, a mother of three children can retire at 57, four children - at 56, and five or more -