Azerbaijan.US
Azerbaijan has a significantly lower share of pensioners compared to its South Caucasus neighbors, a difference driven not by policy alone but by demographics, migration patterns, and retirement age rules.
According to official statistics, pensioners make up 10.8% of the population in Azerbaijan. By comparison, the figure stands at 23.8% in Georgia and 16.6% in Armenia.
Economist Akram Hasanov points to three main reasons explaining this gap.
Higher retirement age
The first factor is retirement age. In Azerbaijan, the statutory retirement age is 65 for both men and women. For women, it currently stands at 64.5 and will rise to 65 later this year.
In contrast, Armenia’s retirement age is 63, while Georgia applies a mixed system – 65 for men and 60 for women. Given that women account for a larger share of the population, lower retirement thresholds in Georgia and Armenia naturally increase the proportion of pensioners.
Younger population and migration
The second factor is age structure. Azerbaijan’s population is, on average, younger than that of its neighbors. Georgia and Armenia have experienced sustained outward migration, particularly among young people who leave to study or work in Europe and often do not return.
As a result, older age groups account for a larger share of the population in those countries, pushing pensioner ratios higher. Azerbaijan, while not immune to migration, has seen this trend to a lesser extent.
Birth rates and demographic balance
The third factor is birth rates. Azerbaijan has not faced the same level of demographic decline observed in Georgia and Armenia, where population growth has stagnated or slowed sharply.
A relatively stable birth rate means Azerbaijan continues to replenish its working-age population, keeping the proportion of elderly citizens lower in overall demographic terms.
A structural, not temporary difference
Taken together, these factors suggest that Azerbaijan’s lower pensioner ratio reflects structural demographic characteristics, rather than short-term policy choices. Analysts note that while a younger population eases immediate pension pressure, it also places greater responsibility on future employment, wage growth, and social security sustainability as the population ages over time.
