According to the Fiscal Strategy for the period 2027–2029, prepared by the Ministry of Economy and Finance, it is projected that the average pension amount in Uzbekistan will reach 1.8 million soums in 2027. This figure exceeds the level of 1.7 million soums recorded in 2026.
It is expected that the number of citizens receiving pensions may increase by 165 thousand, reaching a total of 4.592 million people. It is projected that the Pension Fund's expenditures in 2027 will amount to 95.7 trillion soums, which is 11.1% more than expected in 2026. The growth in these expenditures is partly due to the increase in the number of pensioners.
It is planned that the fund's income will increase by 14%, reaching 73.8 trillion soums. The main source of revenue remains the social tax, which is forecast to bring in 71.4 trillion soums. To cover a possible deficit and ensure timely payments from the republican budget, 23 trillion soums are planned to be allocated, corresponding to the 2026 level.
Medium-term forecasts show a further increase in the number of pension recipients: 4.76 million people are expected in 2028, and 4.94 million in 2029. Accordingly, the average pension amount is forecasted at 1.9 million soums in 2028 and 2.1 million soums in 2029. By 2029, the fund's total expenditures may rise to 119.4 trillion soums.
The Ministry of Economy and Finance warns that without implementing reforms, the dependence of the pension system on state financing during the 2027–2029 period will remain high. Key problems noted include informal employment, which limits the fund's income base, and the existence of social tax benefits for certain legal entities.
To improve coverage by the pension system, it is proposed to gradually transition self-employed individuals who currently do not pay social tax to paying it. Additionally, citizens with official earnings may be given opportunities to voluntarily pay social tax for non-working family members to build their service record. Furthermore, the possibility of gradually abolishing and limiting the provision of new social tax benefits is being considered.
As of June 1, there were over 4.35 million pension recipients in Uzbekistan. These categories include about 3.6 million people receiving old-age pensions, 484.5 thousand receiving disability pensions, and another 260.6 thousand due to loss of breadwinner. Overall, the average pension amount in the country was 1.58 million soums, but as of July 1, this figure increased by an average of 7%. In the capital, Tashkent, the average pension amount was significantly higher—2.16 million soums.
The Ministry of Economy and Finance of Uzbekistan has presented proposals for a comprehensive reform of the national pension system. The goal of these measures is to enhance the financial sustainability of the system and reduce the Pension Fund's dependence on transfers from the state budget. These proposals are included in the Fiscal Strategy for the period 2027–2029.
The Ministry noted that rising pension expenditures and a limited income base for the Pension Fund create increasing pressure on the state budget. In 2024, the Pension Fund's expenses amounted to 64 trillion soums, equivalent to 4.2% of GDP, and in 2025, they are projected to rise to 76.7 trillion soums, maintaining the same share of the economy. During the same period, budgetary transfers increased from 16.3 trillion soums to 20.2 trillion soums.
For 2026, the fund's revenue is approved at 64.7 trillion soums, while projected expenses will be 86.1 trillion soums, accounting for 4.1% of GDP. Additional transfers amounting to 23 trillion soums have been allocated from the republican budget to cover the deficit. The Ministry warns that without reforms, the pension system will continue to rely on budget financing throughout the 2027–2029 period. The main reasons cited for this dependence are the high level of informal employment and existing social tax benefits for certain categories of legal entities.
One of the key proposals is to expand the number of social tax payers. It is planned to gradually introduce mandatory payments of social tax for registered self-employed citizens who are currently exempt. There are 2.8 million registered self-employed citizens in Uzbekistan, about 800,000 of whom make voluntary contributions. Furthermore, the ministry suggests allowing citizens with official income to voluntarily pay social tax for unemployed family members to help them accumulate pension rights.
The Ministry also proposes to gradually limit new social tax benefits and abolish existing preferences. According to Deputy Minister of Economy and Finance Otabek Fozilkharimov, over 65,000 enterprises benefited from such benefits in 2025, totaling 3.2 trillion soums. Another group of proposals concerns adjusting the pension calculation methodology. It is proposed to more closely link pension payments to the amount of social tax paid, as well as extend the earning period used for pension calculations and gradually revise the current upper income limit considered in pension calculations.
The strategy also provides for simplifying the verification of employment records for periods when complete electronic data is unavailable, aiming to reduce the administrative burden on citizens. Another initiative calls for a gradual increase in the minimum work experience required to receive a pension, as the Ministry believes that current requirements do not sufficiently stimulate formal employment. Although the strategy does not specify the proposed new thresholds, the Ministry places great emphasis on developing the funded pension system. To increase attractiveness, it proposes introducing a mechanism of state co-financing of pension savings for low-income citizens. Under the proposed model, if a citizen whose monthly income does not exceed 7.6 million soums contributes 5% of their income to the funded pension, the government will add another 2.5%.
The Ministry is also considering implementing an 'exclusion' mechanism to encourage the declaration of higher official incomes, although the details of its implementation have not yet been disclosed. Additionally, the ministry proposes gradually giving citizens the opportunity to participate in managing their own pension savings, which, in their opinion, will increase system transparency and strengthen public trust. The Ministry of Economy and Finance expects that the proposed measures will broaden the coverage of the pension system, strengthen incentives for formal employment and income declaration, improve the financial sustainability of the Pension Fund, and gradually reduce its dependence on the state budget.
