Data analysis shows that Albania is experiencing a booming voluntary private pension market as its total net assets as of end of June of this year have increased 19.98 percent compared with that of 2014, Albanian financial supervisory authority said on Wednesday.
There are three voluntary private pensions' funds operating in the market during the first half of 2015, taking charge of a total of net assets of 754.83 million lek (6 million U.S. dollars), a growth of 125.68 million lek (1 million U.S. dollars) compared with the end of 2014.
Assets of private pension funds have been invested mainly in treasury bonds issued by the government. And they have attracted about 10,791 members by the end of March of 2015, a 27.09 percent increase compared with the end of 2014.
Albania is facing aging problems like other European countries. Currently, almost one of 8 Albanians is over the age of 65 while by 2050 two of every 8 Albanians will be over this age, according to a report delivered to the World Bank.
To improve the pension system, measures consisting of increasing retirement age, raising participation in the pension system among the working age and providing adequate and affordable pensions are under consideration.
After the newly adjustment of the pension in Albania and starting from August 1 of this year, the minimal incomes for the full pension in the city cannot be less than 14,174 lek (113 U.S. dollars) per month. (1 U.S. dollar = 125 lek).