The Rising Number of Retirees in Georgia and Its Economic Impact

In recent decades, Georgia’s demographic structure has undergone significant changes, with a rapid increase in the number of retirees. This trend has major implications for the country’s social and economic systems.

Demographic Trends: A Growing Elderly Population

Between 2010 and 2015, the number of pensioners in Georgia grew by an average of 8,000 per year. However, this figure doubled between 2016 and 2020, reaching 15,000 annually, and further accelerated in 2020-2024, with the yearly growth rate now exceeding 20,000 retirees.

This trend is driven by:

• Low birth rates
• Increasing life expectancy
• An aging population structure

In 2024, the Georgian government allocated 3.9 billion GEL for pension payments—14 percent more than in 2023, reflecting both an increase in pension benefits and a growing retiree population.

A Global Challenge: Aging Populations Worldwide

The rise in elderly populations is a global phenomenon. According to United Nations projections, by 2050, the number of people aged 65 and older will double, reaching 1.5 billion worldwide.

• Japan has the world’s highest proportion of elderly citizens, with 28 percent of its population over 65.
• In Europe, Italy and Germany follow closely, with 23 percent and 21 percent of their populations in the elderly bracket.
• In contrast, Africa and South Asia remain youth-dominated regions. For instance, in Niger, only 3 percent of the population is over 65.

Governments worldwide are adapting social security systems and economic policies to cope with these demographic shifts.

Economic and Social Implications for Georgia

The increase in retirees places additional pressure on Georgia’s state budget. Meanwhile, the decline in the working-age population reduces economic productivity and tax revenues, creating long-term financial challenges.

Potential Solutions

To maintain economic stability and support retirees, Georgia must implement long-term policies, including:

• Strengthening the pension system to ensure sustainable funding
• Encouraging higher birth rates through family support programs
• Expanding employment opportunities for young professionals to balance workforce participation
• Developing policies to integrate retirees into the economy through part-time employment and social programs
• Attracting skilled labor from abroad to offset the workforce decline

Georgia, like many other countries facing an aging population, must take proactive steps to prevent economic stagnation and ensure long-term financial sustainability. The growing number of retirees requires immediate action to balance demographic shifts and maintain a stable economy.