Iran retirement fund is bankrupt

The spokesman of Hassan Rouhani’s cabinet admitted the country’s retirement fund is completely bankrupt and if serious measures are not carried out quickly the country will be facing major problems very soon.

“Currently the government is decreasing retirement pensions from employees to pay the annuity of seven retired individuals,” said Mohammad Bagher Nobakht.

Prior to this Mahmoud Islamian, director general of the retirement fund referred to various massive cases of financial corruption in this entity and said the country’s retirement fund will not be able to continue its activities without the government’s support.

“At a time when we need to have 6 individuals working for every retired person, in Iran the ratio is less than 1 to 1. This means for each 1.1 million employed individuals we have 1,226,000 retirees, and each year 30,000 people are added to the line of retirees,” Islamian said.