THE NECESSITY OF INVESTING PENSION SAVINGS

In Georgia, the amount of state pension is determined by law and is assigned to men after reaching the age of 65 and women after reaching 60. Each person tries to have a happy and financially secure old age, for which the amount of state pension will likely not be sufficient, as the budget funds and related possibilities are limited. Given that people are an important object of state care, in order to ensure an improved standard of living upon reaching retirement age, as a result of the pension reform implemented in Georgia in 2018, a mandatory funded pension scheme came into effect on January 1, 2019, in which participation and contribution payments are mandatory, with the state also included. The accumulated pension savings can be invested in three investment portfolios with different levels of risk and expected returns. Citizens can choose for themselves which portfolio they wish to invest their pension savings in. The selection of investment portfolios has been postponed until 2028, and all those who have not made an individual choice have been automatically distributed into the low-risk portfolio. The reason for the postponement was cited as insufficient information provided to citizens by the Pension Agency about the investment portfolios. We consider it necessary to involve scientists and highly qualified scientific practitioners in researching this issue to overcome this problem and provide more clarity. That is why this paper presents important issues regarding the investment of pension savings. For proper investment, communication with the public and their information is necessary. Keywords: Pension, pension contribution, investment portfolio, investment, pension reform, business.