ISSH Reports 353,000 Partial Old-Age Pensions Across Albania
New data from Albania’s Social Insurance Institute (ISSH) show that around 353,000 old-age pensions in the country are classified as partial pensions.
The figures highlight ongoing problems within Albania’s pension system, where many retirees do not qualify for full pensions because of insufficient contribution years and undeclared salaries during employment.
According to ISSH rules, individuals who have fewer contribution years than required receive reduced or partial pension payments.
Low Social Contributions and Informal Employment Affect Pension Levels
Experts and ISSH officials have repeatedly linked low pensions to informality in the labor market, unpaid contributions, and underreported wages.
Many employees reportedly worked for years without full social insurance declarations, while others emigrated or interrupted employment, reducing their total insured years.
Officials warn that undeclared salaries continue to weaken the long-term sustainability of Albania’s pension scheme.
ISSH Says Average Pensions Continue to Decline
ISSH Director Astrit Hado previously stated that average pensions in Albania have been decreasing because many new retirees have incomplete contribution histories.
Data indicate that a significant number of workers either contributed for fewer years than required or paid contributions based on minimum salaries, directly affecting pension amounts.
The issue is considered especially serious among workers employed informally during the 1990s and early transition years.
Albania Pension System Faces Pressure From Demographic and Economic Challenges
Analysts say Albania’s pension system continues to face pressure from population aging, migration, and a large informal economy.
International experts and institutions have also warned that underreporting wages and avoiding contributions could create long-term financial risks for future retirees.
Authorities continue encouraging voluntary insurance contributions and stronger wage declaration policies to improve pension sustainability.