Purpose: Given that the challenges facing pension funds have been recognized as a critical issue in Iran's Sixth and Seventh Development Plans, this study aims to examine various dimensions of the financial sustainability of the country's pension funds, with a particular emphasis on the Iran’s social security organization. The analysis focuses on key factors influencing financial sustainability, the current state of these factors, necessary policies and programs to address the sustainability crisis, and policy recommendations for effective resolution.
Method: This research employs a mixed-method approach combining content analysis and statistical analysis. First, financial sustainability indicators specific to pension funds were identified and calculated for the social security organization to assess its current and projected financial standing. Subsequently, influential variables—both internal and external, as well as those related to revenues and expenditures—were examined. The study also explores recent trends affecting these variables, identifies key drivers behind the social security organization’s current fiscal instability, and reviews strategies and policy options for improving sustainability.
Findings: The results indicate a deteriorating trend in the social security organization’s financial sustainability, suggesting an increasing dependency on external resources to fulfill its future obligations. Without timely reforms, this dependency is likely to grow.
Conclusion: Addressing the financial sustainability challenge of the Social Security Organization requires a two-pronged approach: .1 effective governance and oversight by the state, and .2 internal optimization and reform within the organization itself. Success in this regard depends on the political will of the government and parliament to enact and amend necessary legislation, as well as on the organizational agility of the SSO to implement structural reforms. These reforms are feasible within the framework of upstream documents, such as the Seventh Development Plan and the General Social Security Policies.