In considering the Azerbaijan’s pension system and its financial mechanisms in this paper, the main point is to draw attention to changes in the legislation and further development processes. The main directions of reforms of the pension system in Azerbaijan, development of individual account system in the state social insurance system, changes in the calculation of pensions, international experiences are reviewed in this chapter and sustainable development prospects of Azerbaijan’s insurance-pension system are analyzed. As summary of research the number of recommendations on pension system’s development, its difficulties and solutions are provided.