Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Albania. Only wage increases through more productivity can save public pension system, Word Bank says

By Tirana Times

The only way to guarantee that Albanians can rely on a public pension in the future is to increase wages through higher productivity, the World Bank says in a recent report.

Albania is going through a major demographic transition with high rates of out-migration and the rapid aging of the population, which is making its social insurance system a huge burden on the economy as the contributor/beneficiary ratio continues to deteriorate.

In Albania, expenditures in relation to GDP for the public pension system are still low, at about 7 percent. Developed countries usually have a rate of 12 percent.

Total budget expenditures for the pension system increased during the 2012-2016 period, but they remained at the level of 7.4 percent of GDP until 2019 and around 7.7 percent in 2020. These results rank Albania last compared to the countries of the Western Balkans.

Also you may interesting in
Australia. Pensioners re-entering workforce would make a ‘tangible difference’
​PFA rapped by Danish FSA over alternatives risks

The deficit of the pension scheme — the missing income from insurance payments that must be covered by the state budget — amounts to about 1.7 percent of GDP.

Moreover, the amounts people currently get through the pension system are also among Europe’s lowest. And as inflation bites, there are already calls on the government to increase pensions for current elderly — increases which will have to be financed entirely through taxpayer funding as the system is tapped out.

Read more @Tirana Times 

353 views