Abstract
The purpose of this study was to analyse the pension systems of Central Asian countries to evaluate the effectiveness of pension reforms and identify key challenges impacting their financial sustainability. The study focused on the impact of labour migration, informal employment and demographic changes on the pension systems of these countries. A comparative analysis was conducted to assess the pension systems based on key indicators such as pension fund contributions, demographic trends, and the structure of pension models – pay-as-you-go, funded, or hybrid. The results of the study showed significant differences between the pension systems of Central Asian countries. Kazakhstan had introduced a funded pension system, but was facing problems due to low investment returns and public distrust. Uzbekistan, despite efforts to integrate migrant workers into the pension system, still struggles with insufficient contributions from the informal sector. Turkmenistan maintains a public pension system, but a lack of transparency limits the ability to assess its long-term viability. Kyrgyzstan has introduced a hybrid pension system, but labour migration and the informal economy undermine its effectiveness. Tajikistan continues to rely on the traditional pay-as-you-go model, but economic instability and migration pose serious financial challenges. Thus, pension systems in Central Asia share common challenges, especially in managing labour migration and covering informal workers. Ongoing reforms are needed to improve financial management, diversify investments, and expand coverage to ensure the sustainability of pension funds
Keywords
demographic challenges; retirement benefits; social security; financial sustainability; welfare state
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