Private pensions, 1,451 contributors added to the scheme - AFSA: Total fund assets “expand” by 493 million lek
More and more citizens are choosing to contribute to a private pension, in addition to the state one, in order to have a higher level of benefit in old age.
The latest data from the Financial Supervisory Authority shows that the number of members in private pension funds has reached over 46 thousand. Compared to the end of last year, we have had a 3% increase in contributors to private pension funds. In other words, 1,451 new contributors were added to the private pension scheme in the first quarter of 2025.
The total net assets of private pension funds are 13 billion lek, a value about 3.8% higher than in 2024.
The money that citizens pay for a private pension, private pension fund management companies invest only in government securities, i.e. in treasury bills and bonds and do not invest in other forms, such as bank deposits. According to official statistics, these companies have invested 8.2 billion lek in treasury bills and bonds, 28% more than in 2024. The interest earned on government securities results in 152 million lek.
Citizens have the opportunity to invest their money in seven private pension funds, which are administered by four companies.
Despite the increase in private pension contributors, the ratio to those who contribute to a state pension is still very small. Approximately, only 5.5% of social security contributors also contribute to a private pension.
Within the framework of the pension reform on which the Albanian government has been collaborating for some time with the World Bank, with the aim of increasing the benefit amount for those who are newly retiring, it has been discussed to intervene in two main pillars, specifically in the review of the assessment coefficients, as well as in the implementation of the second pillar, which is private pensions, i.e. to make it mandatory that a percentage of an employee's salary also go to a private pension.
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