Reform of the State Pension System in Albania
Reform of the State Pension System in Albania

Summary/Abstract: In analysing the issue of social insurance, it is necessary to mention that everyone has their contribution registered, although the money taken by these contributions are immediately used to pay out benefits. The “pay-as-you-go” system means that working people contribute into the social insurance scheme the pensions of the current generation of retired people, or of those with disabilities, with their own pensions aftertheir retirement paid out in turn by younger generations of workers. It is obvious that, without sufficient contributions, current pensioners can not be paid, nor can they receive other benefits they may require. The goal of this paper is to analyse the current situation of pensions in Albania and to suggest some recommendations for increasing the amount of the state pension.

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