Nearly one in three Albanians will be over 65 by 2060. From just over 473,000 in the last quarter, the number of elderly people is expected to reach over 667,000. According to grim forecasts by the Institute of Statistics, elderly people over 65 will make up over 40 percent of the total population in 2060.
"This means that the pension scheme will go into even more difficulty. If concrete measures are not taken, the scheme will go into irreversible decline. If in 2020 we had 1.4 contributors per 1 beneficiary, the indicator fell to 1.17 contributors per beneficiary in March 2022," declared Klodian Muço, an economic expert.
The ongoing mass exodus of young people, meanwhile, is expected to increase the average age of the population by a full 17 years. From 42.5 years currently, the average age is expected to reach 50 years by 2060.
Given that demographic developments are not showing any signs of optimism, the Ministry of Finance is reviewing the pension scheme, with the aim of avoiding its possible collapse.
"To review the scheme, you need to either increase the number of years of work required for retirement, a policy that would provoke a reaction from the population, or increase costs. So, increase contributions by placing this burden on business and public administration through salary increases," said expert Klodian Muço.
With the increase in the elderly population, the International Monetary Fund predicts that due to the reduction in contribution years, many Albanians will soon risk being left without a pension. Data shows that to retire last year it took 37.5 years of work, but on average the elderly had only 27 years of insurance. (A2 Televizion)
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