Abstract
This paper analyses the social and economic impact of the three-pillar reform of the pension system in Albania, assessing its contribution to fiscal sustainability and the financial well-being of older persons. The study draws on national and international data (INSTAT, World Bank, IMF, ISSH) for the period 2015–2024 and combines empirical analysis of economic indicators with a review of public policies. The results show that the 2015 reform increased contributory coverage by about 3.5%, stabilized pension spending at 8.7% of GDP and gradually reduced poverty among those aged 65+ from 23.4% to 19.6%. However, structural challenges such as informality, low replacement ratio and lack of voluntary private funds remain prominent. The study concludes that Albania has advanced towards a more sustainable and equitable system, but additional reforms are required to strengthen the second and third pillars, expand formal participation, and guarantee an adequate level of income in old age.