The International Monetary Fund (IMF) has recommended that the Albanian government undertake a comprehensive reform of the pension system.

In its latest report, the IMF states that reviewing the pension scheme remains a top priority, even though the system’s deficit is currently at a historically low level.

The IMF warns that pension liabilities are already exceeding contributions, creating a deficit, and that spending pressures will increase as the elderly population grows.

“The old-age dependency ratio in Albania is currently 26%, but it is expected to triple by 2070, reaching 83%, a significantly higher level than in neighboring countries. The increasing pension costs are supported by United Nations demographic projections, which foresee long-term demographic shifts in the country and the growing weight of the elderly population,” the report states.

However, the IMF also projects an increase in social security contributions, along with GDP growth per worker.