Albania faces pension crisis as 27% of retirees near extreme poverty

Official data show that 27% of Albania's pension‑age population – about 641,000 people – are being pushed toward the extreme‑poverty threshold. The average pension for the newest cohort fell to 16,000 lek in 2025, a 3% drop from the previous year, while 55% of retirees receive partial pensions averaging only 13,500 lek per month. Inflation and rising living costs have eroded purchasing power, and the World Bank’s poverty line of $8.30 per day (roughly $249 per month) now exceeds many retirees’ income.

The number of pensioners is rising faster than the pool of contributors. Since the 2014 pension reform, the system has seen a surge of new beneficiaries – 30,000 new retirees last year alone – bringing the total to over 641,000, or 27% of the country's population. Despite a 24% expansion of the Albanian economy between 2021 and 2025, the gains have not translated into higher pensions, highlighting a widening gap between economic growth and social protection.

Analysts point to a deteriorating dependency ratio and repeated changes in ministry organization that have delayed corrective measures, leaving the pension system under severe strain.