Economic factors affecting the liberalization of the pension system in Azerbaijan

Most important of the pension reforms is the liberalization of the pension system, that is, the creation of a private pension system. There are several factors that hinder the formation of a private pension system in Azerbaijan. The article examines the economic factors affecting the liberalization of the pension system in Azerbaijan. The article analyzed difficulties in collecting social security contributions, classification of countries by the process of collecting social insurance contributions, the ratio of active and passive insurance, informal employment, expenses for payments of contributions to the population for compulsory social insurance, the share of funds allocated from the state budget for social protection and social security in the budget expenditures, the need to conclude employment contracts during a pandemic.