The deficit in the state pension scheme reached Dollar 506 million at the end of 2020, reaching the highest level since the start of the implementation of the new reform in this area.

Government spending on pensions amounted to Dollar 1.34 billion, 2.2% more than in 2019, while contributions for social security payments fell for the first time since 2016.

Economic experts link this phenomenon to the effects of the Covid-19 pandemic, where many people lost their jobs, and in many sectors of the economy there were wage cuts.

But despite the last figures, economy expert Adrian Civici said that the reform launched in the pension system should not be left in the middle, but should be complemented by the establishment of other pillars, such as private and voluntary pensions.

Another factor that keeps the scheme deficit high, where every year the government gives extra money for the provision of pensions is the high informality in the declaration of employees and salaries, as well as the low culture of voluntary payment for pensions in the village.

Experts say the implementation of the reform in the pension system needs to be accelerated, as it is also worsened by the phenomenon of the departure of young people who are the main workforce.