Starting November 1st, approximately 435,000 pensioners in Mongolia will receive an additional payment, called a basic pension supplement, on top of their existing pensions. It consists of a base amount of ₮100,000 and a fixed payment of ₮40,000, plus ₮5,000 for each year of pension contributions, capped at ₮300,000.

🤔 💰 How Much Will Pensioners Receive?

A pensioner receiving the average monthly pension of ₮955,000 and having contributed for 25 years will receive an additional ₮217,250, bringing their total monthly pension to approximately ₮1.2 million, a 22.7% increase. The supplement is designed to provide greater benefits to those with lower pensions and longer contribution histories, helping offset rising living costs.

• 📌 Why now? Although average pensions increased by 9.6% in 2026, annual inflation reached 12.9%, while food prices

⚠️ The Fiscal Challenge

The issue extends beyond pension amounts. Mongolia’s pension insurance fund recorded a surplus of ₮65 billion in 2018 but a deficit of ₮1.1 trillion in 2025. Spending has outpaced revenue, while a growing number of pensioners and higher average payments have added to the financial burden. The new basic pension supplement is expected to require ₮1.2 trillion annually.

⛏️ Reliance on Volatile Revenue

The government’s projected revenue growth for next year also relies on state-owned enterprises and dividends from Oyu Tolgoi. However, copper and coal prices, as well as corporate decisions, can cause these revenues to fluctuate, making them an uncertain source for financing recurring pension payments.

Finally… The pension supplement could support older people’s spending, but stronger demand may also add to inflationary pressures, potentially eroding the benefits. Without measures to strengthen pension insurance fund revenue, the fund’s deficit could reach ₮1.3 trillion by the end of this year and rise to between ₮2.3 trillion and ₮3 trillion next year.