Retirement at age 67 will occur before the current deadline of 2056

2024-11-20 14:45:00, Sociale CNA

Under current social security law, the retirement age increases by 2-3 months per year to reach 67 for both sexes in 2056. The changes currently being discussed aim to reach the 67-year-old criterion sooner than 2056, before 2040. This change causes the age criterion to increase by more than 2-3 months every year.

The Deputy Minister of Economy, Culture and Innovation, Olta Manjani, explained to the deputies in the Economy Committee that the acceleration of the implementation of the age increase scheme can be discussed, but not beyond 67 years.

"One of the proposals of the World Bank is related to the proposal to increase the retirement age. We have opposed it, as this element has been taken into account in the 2014 reform, where the increase has started for women and will start for men in 2032. In 2056 there will be age equality, 67 years for each gender. The only thing that can change is the acceleration in the implementation of the pension age increase scheme," she said.

A major reform of the pension system was implemented in 2015. The reform gradually increased the length of contribution required for a full pension to 40 years by 2032. The retirement age will rise to 67 by 2056 for both men and women. A non-contributory social pension was established and the contribution was closely linked to real wages.

The length of contribution to be entitled to a full pension is currently around 39 years and the limit to benefit from a partial pension is higher than the OECD average (34 years for a full pension and 13 years for a partial pension partial).

Longevity has increased spending on pension schemes. For example, in 2000 the average life expectancy was lower, for men it was about 73 years, while for women it was about 77 years. Two decades ago, the average retirement age for men was about 10 years for men and 17 years for women.

The data show that between 2000 and 2023, there was an expansion of the period of enjoyment of the pension, due to the increase in life expectancy. According to the latest INSTAT data, the average life expectancy in Albania in 2022 was about 77 years for men and about 81 for women.

While the time to enjoy retirement reached 19.4 years for men and 27 years for women. The extension of the years of enjoyment of the pension increases the pressure for more expenses in the pension scheme, which is also under the pressure of the increase in the number of pensioners./ Monitor magazine