Pensions in Uzbekistan and why to save on top

Retirement feels far away for most working people, which is exactly why it is easy to leave to chance. In Uzbekistan, a working person's future income in old age rests on two public pillars, the state pension and the individual accumulative pension account, plus whatever you save yourself. This guide explains in plain terms what the law says about each pillar, what it does not promise, and how to think about building your own savings on top.

Pillar 1: the state pension

The state old-age pension is governed by the Law "On state pension provision of citizens". Under Article 7 of that law, as of September 2026, the right to an old-age pension arises:

• for men at age 60 with at least 25 years of service;
• for women at age 55 with at least 20 years of service.

If you have fewer years of service, Article 8 provides a pension proportional to the service you do have, provided you have at least 7 years of qualifying service. Special rules apply to certain professions and groups, which can lower the age.

The size of the state pension depends on your recorded earnings and years of service, calculated by formulas set in the law and its regulations. The practical point for planning is simple: your recorded service and officially paid wages matter. Years of informal work that were never recorded may not count.

Pillar 2: the individual accumulative pension account

Alongside the state pension, Uzbekistan has an accumulative pension system. Each participant has a personal accumulative pension account held at Xalq banki, often called INPS.

According to the regulation on employers' mandatory accumulative pension contributions, registered on 20 November 2024:

• Employees whose wages are subject to personal income tax are mandatory participants. Their employer transfers the mandatory contributions to their personal account together with the payment of personal income tax, in the amount set by law.
• Individual entrepreneurs, members of dehqon farms without a legal entity, and other citizens fully exempt from personal income tax can take part voluntarily.
• The registers banks keep record mandatory and voluntary contributions separately, so you can add money of your own.

Contributions on this account are much smaller than your wage, so the balance builds slowly. Treat it as a useful supplement, not as a full retirement plan. You can check your account through Xalq banki.

Voluntary contributions and the tax exemption

Under Article 378, item 16 of the Tax Code, as of September 2026, the part of your wages that you direct to a voluntary personal accumulative pension account at Xalq banki is not subject to personal income tax. In other words, money you choose to put aside for retirement through this channel can be saved from your gross income rather than after tax.

Article 378, item 23 contains another exemption that matters for investors: part of your wages directed to a personal investment account to buy securities issued on the local market is exempt, if you keep the money there for at least twelve months from the first transfer, stay within monthly and total limits tied to the minimum wage, and use the money to buy securities. If the conditions are broken, the tax is withheld after all. Ask your employer and your bank or broker how these exemptions are applied in practice before relying on them.

Why saving on top matters

Public pensions are designed to prevent poverty in old age, not to replace your full income. Several factors make it sensible to save more yourself:

• Longer lives. Retirement can last twenty years or more.
• Gaps in service. Periods abroad, informal work or caring for family can reduce recorded service.
• Inflation. Prices rise over decades. Savings kept idle lose purchasing power; see inflation and your savings.
• Flexibility. Your own savings let you choose when to stop working and how to support family.

How much to save: an illustration

The numbers below are purely illustrative and are not a forecast. Suppose you are 30 and put aside 500,000 soʻm a month until 60, which is 360 payments and 180,000,000 soʻm in total.

• If your savings only keep pace with inflation (a real return of 0%), you end with 180,000,000 soʻm in today's money.
• At a real return of 3% a year after inflation, you end with roughly 290,000,000 soʻm in today's money.
• At a real return of 5% a year, roughly 410,000,000 soʻm.

Starting earlier matters more than almost anything else, because each soʻm saved has more years to grow. Compound interest explained shows the effect.

A simple plan for retirement saving

1. Check your records. Make sure your employment and wages are officially recorded, and know where your accumulative pension account is held.
2. Build the foundation first. An emergency fund and no expensive debt come before long-term investing.
3. Choose a monthly amount. Pay it on the day after your salary, as a fixed habit.
4. Use the tax-efficient channels you qualify for. Voluntary pension contributions and the personal investment account can lower your tax, if you meet the conditions.
5. Invest for the long term. Money for retirement in twenty or thirty years can carry more shares and bonds than money you need soon. Move it gradually towards deposits and short bonds as retirement approaches. See asset allocation.
6. Review once a year. Increase the amount when your income rises.

The paid Pension feature on Finmind lets you record your accumulative pension account, private and employer pension accounts and their contributions, so you can see your retirement savings in one place alongside your other investments.

This article is for education only and is not investment advice. Investing in securities involves risk, including the loss of money you invest.