On the verge of pension age
09/09/2011 16:50
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The declaration that the Albanian Prime Minister released some days ago
for planning to increase pension has turned into a major debate for the
public opinion, who will be directly affected by this possible decision
of the Albanian government.
Employees of different professions, drivers, mechanics, office clerks and teachers speak about the effect that the pension increase would bring in their lives.
The reactions for this sensible social and economic matter, which has provoked a wide civil and media debate in the last days, was reflected even on the Albanian Prime Minister, who tried to moderate his position during a TV interview this Thursday. Berisha declared that the pension age will not increase, but will be indexed in full accordance with the life expectancy. However, this declaration is not clear and leaves the debate still full of controversy.
Citizens against pension increase
Demographic studies show that the category of people under 65 years of age is growing, making our society to get older.
The growth of people who should benefit from the social security scheme, due to this phenomenon and the Albanian society getting older brings another higher bill to be paid. But is this bill lightened by the increase of the pension age? The idea of the Albanian Prime Minister for changing the pension scheme, bringing the pension age to 70 years old, has caused irritations among the people.
Many senior citizens who are on the verge of 70 years of age declare that they are physically and mentally unable to work until that age.
Employers prefer young people
The initiation that the Prime Minister announced for increasing the pension age, besides the several social effects, raises the question if the Albanian market offers jobs for the elders.
Official data of the INSTAT show that more than 64% of the Albanians who currently have a job, work in the four key sectors of construction, mining, agriculture and active processing imports, all of them mainly based on physical activity.
Developing economies like Albania’s, generally tend to have a job marked mainly based on physical labor, due to the economic profile, backward technology and low education level. Consequently, the chances for getting a job decrease, with the passing of the years.
This is confirmed even by the recent study published by INSTAT in the middle of 2009, stating that individuals from 30-54 years of age are more prone to find a job in the market, and 70% of them are occupied.
But after this age, the unemployment numbers drastically increase. Only 60% of the people between the 55 and 59 years of age are employed and only 40% of the people 60-65 years old. If the pension age will increase to 70 years, when only 40 from 100 people of 60-65 years of age are working and 60 others are waiting pension, the unemployment level will increase even more. Who will secure their living?
Albania is one of the countries with the highest pension age in Europe. Official data of the OECD say that the pension age for men in Albania is in average 2.1 years greater than the average in developed countries.
“There are only two states that have a greater pension age than 65 years, Norway and Iceland. It is impossible to compare the Albanian reality with the reality of these two countries”, declared Gjergj Filipi from the institute “Agenda”.
Albanians live less than citizens of other developed countries. Due to the high pension age, a male in Albania benefits today 14.5 years of pension, while the average in developed countries it is 18.5.
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