52% of pensioners did not receive full pension in 2024

2025-07-02 10:33:00, Ekonomi CNA

Of the total old-age pensions, more than half of them, about 52 percent, received partial payments in 2024 according to official data in 2024. This percentage was further expanded from the level of 49.7% in 2023.

The increase in people with partial payments indicates that more and more of those currently retiring do not meet the criteria due to emigration, informality or interruption of insurance periods.

The data shows that the total number of old-age pensions reached 607,567 in 2024 with an annual increase of 2.9%, while the number of partial pensions reached 316,781 thousand with an expansion of 7.8% compared to 2023.

For the first time last year, more than half of pensioners received a partial pension.

Many beneficiaries are failing to complete the minimum insurance period required for a full pension. The reform, which took a decade to work on and began to be implemented in early 2015, was based on increasing the years of social security contributions from 35 to 40 years by 2032 and gradually increasing the retirement age for women by two months per year, to reach 63 years in 2032 and 67 years for both sexes in 2056.

Last year, more than 38 years of insurance were needed to receive a full pension, but official data shows that in 2024 the average years of insurance for new pensions were 26.7, well below the criteria for a full pension.

Informal employment, where workers do not register or pay social security contributions, directly reduces the insurance periods accumulated by individuals, leading to more people receiving partial pensions. Official data suggests that almost a third of workers in Albania still work informally. This figure is higher according to the International Labour Organization (ILO).

Temporary or permanent migration of workers, especially young people, causes interruptions in social security contributions. When they return or claim their pension, they have incomplete insurance periods and receive a partial pension.

The increase in partial pensions has a direct and often challenging impact on the quality of life of retirees. Partial pensions are lower than full pensions, so retirees receive a smaller monthly amount, reducing their ability to meet basic needs such as food, housing, healthcare and other daily expenses.

Due to low pension income, many pensioners who receive partial pensions face the risk of poverty or aggravated social situation, especially those who do not have family support or other sources of financing./ Monitor Magazine