In Mongolia, men’s average life expectancy is 66, however, the Government aims to increase the retirement ages to 65. Therefore, Mongolian tax payers cannot pass on their pension savings to their children. This means, Mongolians will die without benefitting enough to receiving pension after paying taxes their whole lives.
Furthermore, the Mongolian Government increased social insurance taxes by 2 percent from 1 January, 2021, bringing the total to 26 percent – the highest rate in the world!
The Mongolian Parliament approved an amendment to the Law on Social Insurance Taxes in 2017 to increase taxes from 7 percent per employee and employer to 9.5 percent, again a raise by 1 percent in 2018, by 0.5 percent in 2019 and 2.5 percent in 2020. However, the increase of 2.5 percent in 2020 was delayed until January, 2021.