Pension system in Albania
The pension system in Albania has fulfilled its basic functions during the transition and now it suffers from some outstanding issues that render its reform indispensable. First, the pension scheme suffers from a very high deficit that renders it financially unaffordable. Secondly, although all elde...
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| Format: | Article |
| Language: | English |
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International Institute for Private Commercial and Competition Law
2017-06-01
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| Series: | European Journal of Economics, Law and Social Sciences |
| Online Access: | http://iipccl.org/wp-content/uploads/2017/06/211-220.pdf |
| Summary: | The pension system in Albania has fulfilled its basic functions during the transition and now it suffers from some outstanding issues that render its reform indispensable. First, the pension scheme suffers from a very high deficit that renders it financially unaffordable. Secondly, although all elderly are covered by the scheme due to the entire employment during communism, a large part of the working age population currently is not insured due to high unemployment rate but also informality. This has worsened sensibly the report between contributors and beneficiaries. Therefore, the Albanian pension system is no longer able to balance sufficiency of benefits with affordability of costs. Given the importance of pensions for social protection, it is necessary to intervene immediately to reform the system. |
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| ISSN: | 2519-1284 2520-0429 |