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The voluntary private pension market continued to expand in the first half of this year, exceeding 48 thousand members.
According to data from the Financial Supervisory Authority (AMF), in mid-2025 the number of fund members reached 48,241 members, an increase of 7.4% since the beginning of this year and 10% compared to the same period last year.
The number of individuals participating in private pension funds has been growing steadily over the past decade and is at historically high levels. However, the penetration of private pensions still remains modest. Individuals contributing to a private pension account for approximately 6.5% of the number of contributors to the public social security scheme.
The value of net assets of pension funds at the end of June this year reached 8.6 billion lek, 7.3 billion lek, up 9.7% since the beginning of the year and 17.8% compared to the same period last year.
However, if we include closed-end pension funds, the total value of assets is significantly higher, at approximately 13.9 billion lek.
Pension fund assets are mainly invested in Albanian government bonds. In terms of asset value, the private equity market still remains the smallest segment of the financial market in Albania.
The new Law "On Private Pension Funds", which entered into force at the end of 2023, has brought increased fiscal incentives for contributions to private pension funds.
According to the new law, the maximum monthly tax exemption limit for private pension contributions has been increased to the level of the approved minimum wage, which has reached 40 thousand lek per month. With the current minimum wage level, the amount of contributions exempt from taxes reaches 480 thousand lek per year. Private pension contributions paid by the employer in favor of the employee will also be exempt from tax to the same extent.
The law also provides that pensions are not taxed on the contribution portion, but only on the return on investment, provided that the withdrawal is made in monthly payments spread over at least two years and not immediately, after meeting the legal conditions for benefiting from a private pension.
Currently, six private pension funds are active in the private pension market, managed by four management companies.
According to the number of members, the largest player in the market is Credins Pension, with around 40.83% of the total number of members, followed by Sigal Max Pension with 36.19%, Raiffeisen Pension with 10.51%, Albsig Pension with 9.77%, Smart Pension, with 1.44% and Sigal Pro Pension, with 1.27%.
In terms of net asset value, the largest fund is Sigal Max Pension with 38.09% of the total, followed by Credins Pension, with 30.34%, Raiffeisen Pension, with 20.55%, Albsig Pension with 9.36%, Smart Pension, with 1.13% and Sigal Pro, with 0.52%./Monitor
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