Private Pensions in Albania (The Need of a Reform According to the European Standards)

During the midlife age nobody is concerned or worried about the pensions. Years pass and pensions become our main common concern. We start questioning ourselves if we will have a sufficient pension that will allow us a good quality of life and if the amount of our monthly contributions will gave us a right pension. The background of this research was inspired from the questions that were mentioned previously and also from the fact that the work of our whole life needs to be awarded with a good pension. The supplementary income that we can have in addition to the income that derives from the payment of monthly contributions is really tempting. The investment in voluntary pensions can be a complementary asset to the actual system “pay as you go†. The purpose and the functioning of the voluntary pensions are sometimes perceived as ambiguous. The supervision institutions and the law “Voluntary Pension Funds†help the third age. We can have a major return from investing our money in the long-term; we also have a supplementary income at the moment of our retirement having the benefits of good life at an old age. The number of the contributors that have invested a part of their savings in voluntary pension funds has increased according to the recent statistical data. The quantity of the amount of individual contribution has increased too. Albanians are conscious that a part of their savings should be a long-term risk free investment.