AZE.US
Azerbaijani economist Natig Jafarli has questioned how pension savings accumulated by citizens in the country’s State Social Protection Fund (DSMF) are managed and whether contributors have sufficient rights to access those funds.
In a post on social media, Jafarli pointed to demographic and structural issues within the pension system, noting that the number of pensioners in Azerbaijan has declined over the past three decades.
According to the figures he cited, the country had about 1.25 million pensioners in 1994, while as of Jan. 1, 2026 the number had fallen to roughly 1.09 million.
At the same time, he said, birth rates in the country are also declining, which could create long-term social and economic challenges if policies are not adjusted.
Jafarli also raised concerns about the accessibility of pension capital accumulated by workers during their careers. Under current rules, a minimum pension capital threshold of 46,080 manats is required to qualify for a pension.
However, he noted that some citizens accumulate much larger amounts – sometimes 100,000 to 150,000 manats – yet still cannot freely access these funds.
The economist also questioned what happens to pension savings if a person dies before reaching retirement age.
He suggested that in such cases the accumulated funds could potentially be transferred to heirs, allowing families to use the money for purposes such as education expenses or mortgage payments.
“The government must clearly explain whether the money accumulated in the pension fund truly belongs to citizens or if it effectively functions as a tax,” Jafarli wrote.
The comments have sparked renewed discussion online about transparency and access within Azerbaijan’s pension system.