For years, Albania has grappled with the pervasive issue of elderly poverty, where inadequate social security systems, limited access to health care and the burden of intergenerational economic disparities have compounded the challenges faced by older citizens. The pension amounts in Albania continue to fall short of the relative poverty line, which stands at $6.7 per day or roughly $201 per month. Here are some of the factors that play a role within the issue of elderly poverty in Albania.

Post-Transition Albania

Today’s elderly in Albania have borne the brunt of the country’s tumultuous political economic transition back in 1991. The abrupt shift to market capitalism left many elderly people without savings or social safety nets, exacerbating their vulnerability. Additionally, the rapid aging of Albania’s population presents a looming demographic challenge. In 2022, Albania counted 630,000 people over the age of 60 years, comprising 22.5% of the national population, with projections indicating a rise of 26% in the coming years.

Economic Hardships and Pension Issues

Economic difficulties, invigorated by pension issues, further contribute to elderly poverty in Albania. Despite efforts to bolster economic development through foreign investments and seasonal tourism, poverty, unemployment, corruption and political instability persist. In 2019, approximately 33% of Albania’s population lived on less than $5.50 per day, marking it as the Western Balkan nation with the highest poverty rate.

Expensive living conditions and a lack of education opportunities are common reasons for young Albanians to leave the country. This exodus of young Albanians has led to high unemployment rates. With 60% unemployment among individuals aged 18 to 34, the workforce is dwindling, contributing to fewer contributions to the pension system. Consequently, there are fewer funds available to sustain pensions. Besides, the pension alone is often not enough to cover all one’s expenses, increasing the likelihood of elderly poverty. Health care costs, especially for chronic illnesses, pose a significant financial burden for older individuals, with around 91,000 elderly people in need of long-term care.

The government’s response to these challenges has been mixed. While there have been increases in social security spending, informal employment and irregular contributions present challenges in maintaining pension levels. Additionally, geographical disparities in social care provision mean that rural areas often have fewer health care services available.

Addressing Elderly Poverty in Albania

Despite these challenges, there are efforts underway to address elderly poverty in Albania. A non-profit called World Vision – World Vision is a global humanitarian organization that works to empower communities, alleviate poverty and provide assistance in areas such as education, health care and economic development – and municipalities have launched projects to extend health care services to remote areas, while the government has approved a National Action Plan aimed at combating elderly poverty.

The plan includes goals such as establishing daily care centers, residential centers and specialized buildings for vulnerable elderly individuals, as well as appointing nurses and social workers for home visits.

Looking Ahead

As Albania confronts the complexities of elderly poverty, initiatives led by World Vision and supportive government strategies are paving the way for meaningful progress. The establishment of care centers and expansion of health care services promise a more secure and dignified future for the nation’s elderly population. Through these collaborative efforts, Albania is taking significant steps toward alleviating the challenges of elder care, signaling a hopeful shift toward comprehensive social support and inclusion.

– Naomi Ronner
Photo: Flickr