
Prices weigh more heavily on pensioners, INSTAT: They have higher than average inflation
Pensioners suffer the increase in prices more than the rest of the population, as their monthly budget is more focused on buying food, which has become more expensive, than on other goods and services such as education and entertainment, etc. .
The family budget survey shows that 41.3 percent of the total monthly expenses went to food in 2021, while for the retired, the weight of food is 59 percent of the monthly expenses.
According to INSTAT measurements, during the period June 2022-June 2023, the official inflation indicator in our country was 6.9 percent, while pensioners' inflation was 8.6 percent, or 1.7 percentage points higher than the average indicator.
Based on a 2017 government decision, INSTAT measures the inflation of pensioners for 12 main groups of monthly expenses, which have different weights in relation to the average inflation measured at the national level.
Pensioner inflation was suggested by the Social Security Institute, as the spending structure of the over-65 basket is different compared to the general population.
In the basket of pensioners, expenses for educational services are zero, while for the general population they are 3 percent.
Entertainment and culture account for 1 percent of pensioners' monthly expenses, while that of the average population is 2.8 percent.
INSTAT originally submitted pensioner inflation every February for the previous year in order to index pensions, but with recent events from the Covid-19 crisis and the war in Ukraine, INSTAT has a monthly pensioner inflation indicator.
This practice serves to index pensions more than twice a year if large price increases occur.
Pension income for the third age is very low in our country. Official data from public pension schemes show that the average pension in Albania is 39% lower than in the Region this year.
Sakaq Shqipëria nuk garanton të ardhura minimale për popullsinë. Legjislacioni nuk e specifikon një pikë referimi dhe kjo vështirëson mangësitë në të ardhura në kategori të caktuara ta popullatës. Një studim i vitit 2021 porositur nga Avokati i Popullit rekomandoi që Shqipëria duhet të japë një përkufizim ligjor të standardin minimal të jetesës dhe formësimin social.
Avokati i Popullit e përllogariti minimumin jetik 18,500 lekë në muaj për 2022. Të gjitha pagesat nën këtë nivel duke përfshitë edhe pensionet duhet të mbulohen nga qeveria nëpërmjet fondit të ndihmës ekonomike.
As a large part of pensioners do not meet the legal conditions for full pension payments as most have worked informally and have not paid contributions, the government can compensate from the economic assistance scheme those who receive a pension below the subsistence minimum.
From October 1, 2023, pensions throughout the country will increase by 8.6 percent based on the pensioners basket index./ Monitor
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