The "increased" pension of October 1/ Pensioners will not receive more than 716 ALL per month. Is it enough?

2024-09-16 10:57:40Biznes SHKRUAR NGA REDAKSIA VOX

The "increased" pension of October 1/ Pensioners will not receive more

The increase in pensions at the beginning of October has been announced for a long time. Last weekend, VKM also revealed how pensions will be indexed. According to the decision of the Administrative Council of ISSH, in its meeting dated 12.09.2024, which approved the sending for consideration to the Ministry of Economy, Culture and Innovation of the VKM project "On the indexation of pensions", pensions will be indexed 4.1% from October, and the beneficiaries are 791 thousand pensioners with an effect on the budget of 1.7 billion ALL by the end of the year.

How much is the real pension increase?

The indexation and the financial value made available until the end of the year clearly speak of a minimal growth figure. With a calculation of the arithmetic mean, it turns out that the increase is 2150 new ALL in total for the months of October, November and December, or 716 ALL/month for each pensioner. But this is an average, since those who have a larger pension get something more, or the opposite for those who have a smaller pension.

Is this increase enough with the prices that are in the market?

The pension scheme since 1991 continues to be problematic and for this every ten years a new scheme is drawn up. Even this year, the government, in cooperation with the IMF and the World Bank, is drafting another pension structure, which may still bring a breather, but pensions remain low compared to other countries.

Low fertility rates and the downward trend, combined with the emigration of the reproductive age population, has led to a narrowing of the base of the population pyramid. The Ministry of Finance has calculated that the total expenses of Social Security for this year will be at the level of 169.8 billion lek from 159.9 billion last year.

The birth rate below the replacement level since 2001, the increase in life expectancy, as well as migration remain the main factors of the aging population that today threatens the pension scheme more than ever.

In order for the pension scheme not to collapse and not be used with indexation and bonuses, looking at it on a political level (as a voter), all operating schemes should be looked at and experts suggest that the forced private pension be introduced.

But until then, in October, pensioners expect an increase in their pension and it will not go more than 716 ALL per month, and this depends on the current pension they receive./ VoxNews


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