By Valbona Cinaj 

The pension system faces many problems and challenges. Social security in general is the system of social protection in Albania, as in other countries, is influenced by the country’s economic power, labor market developments, demographic situation, employment situation and unemployment, GDP growth, macroeconomic stability, etc. These indicators will serve not only as a starting point for the analysis of the system, achievements, and problems, but also the level of these indicators will serve as a starting point for anticipating and undertaking new reforms which naturally aim at protecting the right of the population to social security and, on the other hand, increasing individual responsibilities for the current economic situation and the future of everyone. The paper analyzes the benefits of applying for private pensions in a cross-cutting manner from both public and private schemes. Private pension rates operate uniformly, regardless of geographical location, and serve as regulators in household economic well-being. The private pension serves as a powerful generator of monetary value as the economic situation is very low, especially for the elderly. Private retirement should come as a breath for today’s young people as Albania’s population ratio is more effective than that of other countries. Here’s how a private pension can be hereditary even if the person dies; the advantages that private pension offers about the payment of contributions, as they do not have a fixed value, but depend on the ability of each individual. He may also withdraw early, subject to some penalties. The paper deals more fundamentally with the differences between private and state pensions, given that compared to European Union countries, Albania still does not implement the second-degree scheme, unlike in other neighboring countries, not the EU, such as eg Macedonia. To remedy the consequences of economic impacts, greater interference by state bodies is needed in the sphere of public-private relations.

Source SSRN