How does Armenia's funded pension work?

Armenia runs a mandatory funded (cumulative) pension pillar for everyone born after 1 July 1973. The worker pays 5% of gross salary into a personal pension account and the state adds a matching contribution up to a legal ceiling. The money is invested by licensed fund managers and paid out at retirement.

Who has to join the funded pension?

Participation is mandatory for employees and self-employed people born after 1 July 1973. Those born earlier remain on the state distributive (pay-as-you-go) pension, though some can opt in voluntarily. The reform was rolled out from 2014 onward.

What is the retirement age in Armenia?

The standard pension age in Armenia is 63. The funded pillar pays out from the personal account at retirement, on top of the basic state social pension that most residents also receive.

Does this estimate include the state social pension?

No. The tool models only the funded (cumulative) pillar — your contributions plus the state match and investment growth. The flat-rate distributive social pension is paid separately and is not included, so your real retirement income will usually be higher.

How accurate is the projection?

It is an estimate. Real outcomes depend on actual fund returns, fees, salary changes, the contribution ceiling and how long you draw the pension. Treat the figure as a planning guide and adjust the return and growth assumptions to see best and worst cases.

Armenia Pension & Retirement Calculator

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The Armenia Pension & Retirement Calculator projects how large your funded pension pot could grow under Armenia’s mandatory cumulative pension scheme, and turns that pot into an estimated monthly income at retirement. Enter your salary, your current and retirement ages, and a few assumptions, and the tool models every contribution year for you.

How it works

Armenia’s funded pillar (compulsory for anyone born after 1 July 1973) takes 5% of your gross salary from your pay and adds a state matching contribution, up to a legal ceiling. The combined amount is invested each year. The calculator accumulates the pot like this:

contribution(year) = salary * (employeeRate + stateRate) / 100
balance(year)      = (balance + contribution) * (1 + realReturn)
salary(next year)  = salary * (1 + salaryGrowth)

At retirement the pot is converted to an even drawdown over your expected payout years:

annualPension = pot / (lifeExpectancy - retirementAge)

5% from you + a state match, invested every year, then drawn down across your retirement years.

Worked example

A 30-year-old earning ֏250,000/month who retires at 63, paying 5% with a 5% state match, a 4% real return and 2% salary growth, builds a pot worth several million dram by retirement. Raising the return assumption or starting earlier increases the pot sharply because of compounding.

Notes

This estimate covers only the funded pillar. The flat-rate state social pension is paid on top and is not modelled here, and fees and taxes are ignored for clarity. Everything is computed locally in your browser — no salary data is uploaded or stored.