Pensions unsustainable

TIRANA, Nov. 7- The pensions’ program managed by the Institute of Social Security (ISSH) has been able to collect only 58 percent of its revenues while the rest is still waiting for the completion of the state budget. The World Bank, in a special report assesses that many citizens, after paying for 35 years, can expect to be left pension-less. There is a huge gap between revenues and expenses for the ISSH, with 42 percent of expenses being covered by state finances. One group that will have to be fully subsidized by the state is, for example, the self-employed in agriculture, totaling some 265,000 contributors. In total, the number of people dependent on state contributions is 36 673 with a value of 2,972 million lek. This pension crisis has been the focus of WB critics who has advocated changes. The report issued by the WB emphasizes that this scheme is unsustainable while only 46 percent of employed people pay Social Security contributions. Specialists predict that in the future there will be more than 30 percent fewer males with pensions after the age of 65 and 20 percent fewer females with a pension after the age of 60. The report has recommended the government treat this problem as a priority because the situation, for one of the poorest groups in Albanian society, is expected to get worse.