  Many countries around the world have had to carry out radical reforms
periodically in their pension systems. Global experience shows that it is
important to optimize the costs of pension and social security systems in order
to ensure a decent old age in addition to reducing the pressure on budgetary
resources. By Georgia is changing demographic situation, special attention is
paid to proper functioning of the pension policy. The pension reform carried
out in Georgia in 2019 caused a difference of opinion among experts. This issue
in today is conditions does not lose relevance. The presented thesis discusses
the impact of the mandatory funded pension system on the well-being of people.
Thesis includes the following issues: peculiarities of the formation of pension
systems in Georgia. It is presented a small historical excursion in terms of
the development of pension systems. In addition, are discussed the
international experience of pension systems and comparative analysis in
relation to Georgia. This paper specifically focuses on the essence of the
mandatory funded pension system and assesses the current situation in terms of
investment potential of the resource accumulated in the pension fund. In
conclusion, are presented the challenges of this system and the ways of
perfection.
