The Impact of the Pension Scheme on the Economic Growth of the Country

Abstract

Albania’s pension system faces many challenges and many problems to be addressed. In 2014 the next reform was undertaken in order to facilitate the pension scheme. The literature of the field is not consolidated in the case of Albania, which is mainly due to the short history of poor management and statistics of interest. Foreign literature is a great source of consultation, mainly for reforming the pension system as well as the various schools for social protection. The study aims to shed light on the assumption that the pension system is affected by economic growth. The linear multifactor model is used for the study hypothesis, where it was shown that the pension system affects the country’s economic growth. The main components of the scheme are the income from the scheme, the expenses, and funding from outside the pension scheme. Statistical analysis showed that only the expenditures from the pension scheme indicate the economic growth of the country. Considering the lack of data and time series after these 10 years of study, due to pension scheme problems and the pandemic period, the findings of our study constitute a valuable contribution to the other interested people and researchers in this field, who want to make further investigations and study analysis, financial institutions and governors.