Armenia\u2019s mandatory funded pension system has expanded to more than 1.4 trillion drams in assets and close to one million participants, according to the Central Bank and the Central Depository, but economists warn that the system remains overly conservative, weakly competitive and only loosely connected to the real economy.<\/p>\n
As of November 30, 2025, the Central Depository recorded 982,060 pension accounts and net pension assets of approximately 1.407 trillion drams. Central Bank data show that by September 30 the number of participants had reached 988,657, of whom about 450,000 were active contributors making regular social payments.<\/p>\n
The Central Bank and the OECD have highlighted the system\u2019s recent performance. In its \u201cPension Markets in Focus 2025\u201d report, the OECD said Armenia posted strong investment returns in 2024 and continued asset growth.<\/p>\n
Despite its size, the system is heavily concentrated in conservative investment strategies. More than 99% of participants \u2014 and about 98% of assets \u2014 are held in conservative, low-risk funds, according to Central Bank data.<\/p>\n
Two private companies manage the system \u2014 Amundi-ACBA Asset Management and C-Quadrat Ampega Asset Management Armenia \u2014 each offering fixed-income, conservative and balanced funds. If participants do not actively choose, they are assigned by default, a mechanism that tends to discourage engagement and risk diversification.<\/p>\n
Economist Suren Parsyan says the structure of the market limits both competition and economic impact.<\/p>\n
\u201cAfter 11 years there are still only two fund managers operating in almost identical ways and delivering similar returns. There is no real competition,\u201d Parsyan said. \u201cMost of the money works under minimal risk conditions, which means the economy barely benefits, while the main beneficiaries are banks and the state, which can easily place government bonds.\u201d<\/p>\n
Pension funds are now the second-largest holders of financial assets in Armenia after banks, surpassing credit organizations and insurance companies.<\/p>\n
By law, at least 60% of pension assets must be invested domestically and in local currency, while up to 40% may be invested abroad.<\/p>\n
In 2024, the largest share of pension fund assets was invested in government bonds, followed by foreign equity instruments, bank deposits and corporate bonds.<\/p>\n