The last two decades have witnessed global pension reforms. In high-income countries, the driving force has been the threat that the current pension systems will become unaffordable as demographic developments presented a major risk. The countries that were in the process of transition from command economy to market economy confronted the challenge of introducing a public pension system in place of social security available to their populace under socialist system. However, the demographic change and affordability have been the driving force in these countries for reforms. It is anticipated that Pakistan shall also face similar challenges in the near future.