Private pension, complementary to the state pension - Over 48 thousand Albanians pay contributions. Only 5.8% of those in the state scheme
Albanians are gradually becoming aware of the importance of contributing to a private pension. Private pensions are a complement to state pensions. By paying a minimum amount of money into a private pension fund each month, individuals can secure a higher income in old age in addition to the money received from the state pension.
The private pension fund invests this money mainly in treasury bills and bonds, while other instruments such as bank deposits are not preferred by these companies. From the interest earned from investing money in government securities, citizens receive at retirement age the money they have deposited each month, plus a portion of this interest. Official statistics speak of a 15.7% increase in investment in treasury bills and bonds compared to last year, reaching a figure of 9.1 billion lek.
According to data from the Financial Supervisory Authority, private pension funds have over 48 thousand members. Compared to the end of last year, there is an 8.7% increase in contributors to private pension funds. In other words, 3,938 new contributors were added to this scheme in January-September 2025.
The total net assets of private pension funds are 14.3 billion lek, a value about 11.5% higher than in 2024.
Despite the increase in private pension contributors, the ratio to those who contribute to a state pension is still very small. Approximately, only 5.8% of social security contributors also contribute to a private pension.
In the first seven months of this year, 7 private pension funds were active. Half of the members in these funds are women, while half are men.
As part of the pension reform on which the Albanian government has been collaborating with the World Bank for some time, with the aim of increasing the benefit amount for those who are newly retiring, the implementation of the second pillar, which is private pensions, has been discussed, meaning that it should be made mandatory that a percentage of an employee's salary also go towards a private pension.
Various financial system actors have also called for the inclusion of the second and third pillars.
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