Albania will have a very difficult time in the years ahead to provide a dignified life for pensioners.<\/p>\n
Firstly, the majority of those currently employed do not pay insurance, and secondly, the rapid aging of the population is increasing the dependency ratio of the elderly (this report expresses the population aged 65 and over as a percentage of the working-age population aged 15-65).<\/p>\n
In 2023, Albania had a 25% population aged over 65 as a percentage of the working-age population (15-65), at levels comparable to the region. However, unfavorable demographic developments will make the 65+ age group account for 80% of the workforce (15-65) by 2070, according to the latest review of the agreement with Albania by the International Monetary Fund.<\/p>\n
The dependency of the elderly in Albania in 2070 will be at the highest regional levels. This means that in the coming decades, the working-age population will be equal to the number of pensioners. But real population developments, which have worsened in the last decade compared to projections, make the developments even sadder.<\/p>\n
Last year, the average pension in the country reached 19,000 lek (about 200 dollars) per month. Those in the lowest decile receive an average of 8,500 lek per month, and those in the highest decile receive 38,000 lek. Meanwhile, the social pension received at the age of 70 by those who have not paid insurance reached 8,588 lek in 2022, which is approximately one-fourth of the minimum wage.<\/p>\n
The International Monetary Fund highlights that in the future, it is likely that more people will only receive partial pensions, social pensions due to insufficient contribution periods.<\/p>\n
This, combined with the decrease in the replacement rate, may raise concerns about the increase in poverty among the elderly. Whereas in 2012, those who retired had contributed on average for 35 years, those who retired in 2022 contributed on average for 27 years.<\/p>\n
The IMF advises the Government to address the weak coverage of the population in working age with insurance. To achieve this, the Fund recommends incentives to increase the retirement age to pay insurance.<\/p>\n
Also, future pension benefits should be well harmonized with contributions.<\/p>\n
To curb the worsening of benefits in old age, the Fund recommends easing voluntary pension schemes and private schemes, as in some countries they have encouraged people to pay insurance for pension.<\/p>\n","protected":false},"excerpt":{"rendered":"
Albania will have a very difficult time in the years ahead to provide a dignified life for pensioners. Firstly, the majority of those currently employed do not pay insurance, and secondly, the rapid aging of the population is increasing the dependency ratio of the elderly (this report expresses the population aged 65 and over as […]<\/p>\n","protected":false},"author":24,"featured_media":54335,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[153],"tags":[270,2970,4135,243,151,4075,667,1535,612,1195],"acf":[],"yoast_head":"\n