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Inversion of the population pyramid, more retirees than young people in work

Politiko 2026-06-12 14:19:21

Inversion of the population pyramid, more retirees than young people in work

The number of new retirees in the social security scheme is growing much faster than the number of new contributors to the scheme, a trend that is expected to continue in the future due to the aging population structure.

Official data from the Social Insurance Institute shows that the number of people receiving old-age pensions in 2025 was 641,085 or 33,518 thousand more than in 2024, (+6%).

On the other hand, the number of contributors to the scheme reached 870,964 people with an increase of 27,097 or about 3%.

The figures show that the number of people added to the system as pensioners has significantly exceeded the number of new citizens entering as contributors through employment. In 2025, the number of new pensioners in the scheme was 23.6% more than contributors.

Contrary to the trend of previous years, the insurance scheme faced a wave of retirements last year, with 33,518 new beneficiaries. During 2015-2024, the number of new pensioners added to the scheme fluctuated between 15-17 thousand people, but in 2025 this indicator has doubled.

This reversal of ratios means that for every 100 new employees who began paying insurance in 2025, about 124 new retirees were added to the scheme.

The aging population and the wave of retirements are moving much faster than the labor market's ability to absorb new generations. But the financial pressure on the insurance scheme is being kept under control by the low level of new pensions.

The baby boom wave, the 1960s generation, which coincides with the period of highest demographic growth in Albania, is now reaching retirement age.

On the other hand, the emigration of the young workforce, the departure of young people of working age towards European Union countries and beyond, has significantly shrunk the base from which the Albanian labor market can absorb new contributors.

Albania has been suffering from a steady decline in the birth rate for years. This means that the number of young people turning 18 or 22 and entering the labor market for the first time is smaller every year than the generations retiring.

Also, the phenomenon of undeclared employment continues to negatively affect new contributors. Many seasonal workers in tourism and other self-employed workers are not included in the insurance scheme./ Monitor

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