"Pensions, urgent reform" - WB: By 2060, 34% of Albanians are expected to be over retirement age
The World Bank recommends that the Albanian government undertake a series of reforms focused on social protection, education, and urgently review the pension scheme.
The Albania Public Finance Review (PFR) Report analyzes how fiscal policies can accelerate inclusive economic growth and maintain macroeconomic stability as the country progresses towards membership in the European Union.
One of the findings of the report focuses on the pension scheme, where it is estimated that by 2060, 34% of Albanians are expected to be over retirement age, putting the system under pressure. For this reason, reforms are recommended to broaden the contributor base, improve adequacy and stimulate working life to keep the pension system sustainable for future generations.
Massimiliano Paolucci, Head of the WB office in Tirana:
“The study also calls for better spending by prioritizing investments in human capital, infrastructure and social protection, as well as improving the efficiency of public spending. And finally, it calls for managing risks by strengthening fiscal buffers, improving debt management and preparing for the challenges of an aging population and a changing climate. Ultimately, Albanians’ path to EU convergence depends on making every public lek count. So, one area where reform is urgent is pensions. Today, only about 46% of the working-age population contributes to the system and the average replacement rate is 32%. As Albania’s population ages and migration continues, ensuring the sustainability and fairness of pensions is critical not only for protecting the elderly, but also for maintaining fiscal stability. The PFR stresses the importance of investing in young children, expanding access to early childhood education and care, and supporting families, as these are the foundations of growth and inclusion. Let me conclude by saying, by emphasizing that the choices Albania makes today will shape its future for generations to come, Albania can accelerate its journey towards the European Union, and we strongly believe in this . ”
For his part, the Minister of Finance, Petrit Malaj, emphasized that the report is a strategic instrument that helps improve the way fiscal policies are drafted and implemented.
“The fiscal framework we build today will shape Albania’s future for decades to come. It will determine our ability to invest in human capital, support competitive businesses, build strong infrastructure, provide dignified pensions, and increase resilience to climate risks and natural disasters. Albania’s development path is linked, above all, to unleashing the potential of our people. We have made significant progress, but much work remains. We are committed to evidence-based policies and reforms that increase both the quality and efficiency of public finances.”
The World Bank report analyzes Albania's fiscal landscape, such as macro-fiscal trends, revenue mobilization, and public spending efficiency.
"Roaming tariffs with the EU end in 2026" - Rama and Kos, at the joint table for the Western Balkans
Roaming tariffs with the European Union will end in 2026. This was announced by Prime Minister Edi Rama, at the joint roundtable with Enlargement......
Accountants, essential role in EU integration - 25th anniversary of IKM/Digitalization and competition, new challenges of the sector
The accounting profession in the country faces new challenges such as digitalization, artificial intelligence and competition. At the conference marking the......
Montenegro aims to reduce budget deficit - Government approves draft budget. 1.1 billion euros in capital investments in 3 years
The Montenegrin government has approved the draft budget for 2026, targeting a deficit of 278 million euros, corresponding to 3.2% of GDP, lower than the......
"Energy efficiency, at the forefront" - New law requires public buildings in the center to reduce consumption by 1% each year
The Ministry of Infrastructure and Energy has issued for public consultation the draft law "On Energy Efficiency", an initiative that aims to change the way......
How many Albanian minors received residence permits in Europe? In total, 147 thousand permits were issued, Albanians make up 13% of the total
The latest Eurostat data for 2024 show that Albania continues to be one of the main countries of origin of minors who receive their first residence permits......
Trump removes 40% tariffs on Brazilian products - The decision includes coffee, meat, cocoa and fruits
US President Donald Trump has slapped 40% tariffs on Brazilian food products, including meat, coffee, cocoa and fruit. The measures were imposed in July to......
Tourism and construction, the new "winners" of the territory/ In a decade, the weight of agriculture in national production has decreased significantly
The economy seems to be increasingly orienting activity towards construction, property trading and tourism. Data from the Institute of Statistics show that......
Money laundering networks in support of Russia - Criminal groups turn cash into crypto to avoid sanctions
A multi-billion dollar money laundering ring operating in Britain bought a controlling stake in a Kyrgyz bank to facilitate sanctions evasion and support......
