The Mongolian government has announced plans to spend 400 billion tugriks on increasing pensions next year, reflecting its commitment to supporting the country’s growing elderly population. The initiative comes as the proportion of Mongolia’s elderly steadily rises, from 9.7% of the population in 2021 to a projected 11.9% by 2030, with one in five citizens expected to be 60 or older by 2050.
Pension Growth in Line with Inflation
Currently, 422,000 individuals receive old-age and military pensions through the Social Insurance Fund, while an additional 7,000 depend on the Social Welfare Fund. In accordance with legal provisions that mandate annual adjustments to pensions based on inflation, the 2025 budget draft includes a 6% pension increase. This adjustment is designed to protect the purchasing power of retirees in the face of rising costs.
Supporting Economic and Social Inclusion for Seniors
The government has emphasized that aligning pensions with inflation serves broader societal goals. The increase is expected to:
- Sustain Economic Activity: By boosting the financial independence of older citizens.
- Improve Access to Services: Enhancing health, rehabilitation, and developmental programs for the elderly.
- Foster Intergenerational Support: Providing opportunities for the elderly to share expertise and actively participate in community activities.
- Aid Family Stability: Enabling seniors to better support the education and well-being of younger generations.
Addressing the Needs of a Growing Elderly Population
As Mongolia’s demographic trends point toward a rapidly aging society, the government faces increasing pressure to ensure that pensions and welfare programs remain sustainable. The 400-billion-tugrik allocation underscores the nation’s prioritization of long-term planning for an aging population.
This policy aligns with broader global trends where governments are rethinking retirement benefits to keep pace with inflation and economic challenges, ensuring older citizens maintain their quality of life while contributing meaningfully to society.
