The number of people contributing to a dignified retirement climbed from 36,518 at the end of the previous year to 37,594 at the end of June, according to figures from the Financial Supervisory Authority.
Collectively, a mere 2.8% of the approximate 1.3 million workers voluntarily contribute to the pension scheme annually.
“I don’t think much of private pensions. “Investing with a private company would be less beneficial than putting the money in the bank,” says one individual.
“Believe nothing of it. After making an investment in a private pension, I withdrew and did not receive any compensation.”
Executives in the insurance sector admit that citizens have a low willingness to invest and a significant degree of mistrust.
“We recognize that more education is required to motivate people to select voluntary pensions,” says Association of Life and Pensions Insurers spokesperson Elvis Ponari.
However, both citizens and insurance companies agree that the state pension is inadequate. Thus, Albanians continue to devote a little portion of their income to private endeavors.
“It should be acknowledged that older people can’t avoid relying on their children for everything; this is the only way.”
Despite the poor participation in the private system, Parliament is about to approve mandatory private pensions.
The scheme will include state and private pensions in addition to required pensions financed by a mix of public and private payments.”