Private pension sector remain small, but growing

TIRANA, Feb, 3 – Albania’s private voluntary pension sector remains small in terms of contributions and number of contributors, but it did see some growth in 2009, according to the Albanian Financial Supervisory Authority.
Last year, contributions increased by 37.26 percent and the number of contributors increased by 14.71 percent compared to 2008, the AFSA said in a statement.
The most important development this market in 2009 was the adoption of the Law on Voluntary Pension Funds in December, which introduced an enhanced basis for the sector, placing it line with international standards and European directives.
The new law aims to improve the current private voluntary pension system in Albania with expected impact on reduced social costs in the long run, by encouraging individuals to save privately and voluntarily to increment their pensions. It also aims to have increased domestic savings and long-term investment, the financial authority said.