36% of Moroccans lack pension coverage, survey reveals

A recent survey conducted by Sonergia found that a staggering 36% of the Moroccan population does not benefit from any pension system. 

This figure is particularly alarming among workers in the informal sector, where the rate soars to 86%.

While 5% of Moroccans have found alternative ways to secure their retirement, the majority (59%) rely on pensions provided by their employers.

The survey highlighted that only 45% of working Moroccans, including 11% in the public sector, 16% in the private sector, and 18% in the informal sector, are covered by a pension scheme. 

The data also revealed a concerning trend in supplementary retirement savings plans. 85% of individuals receiving a primary pension do not have a complementary savings plan. 

Among those who do, companies contribute an average of 10% to the funding, while individuals contribute a mere 4%. 

A small percentage of 1% save personally through their salaries or bank accounts.

Morocco’s pension system is currently grappling with significant financial challenges, prompting calls for urgent reform. 

The Caisse Marocaine des Retraites (CMR), Morocco’s primary public pension fund, has been experiencing significant financial challenges. 

In 2023, the CMR reported a technical deficit of approximately MAD 9.8 billion, with total reserves standing at MAD 65.8 billion. Projections indicate that if no corrective measures are taken, these reserves could be depleted by 2028.

Zineb Adoui, President of the Court of Accounts, said that there’s a need for accelerated changes to ensure the system’s sustainability.

In response to these challenges, the Moroccan government is considering a comprehensive overhaul of the pension system. 

Proposed measures include the creation of a dual public-private system to address existing financial imbalances and ensure long-term stability. 

The government aims to implement these changes by 2025, with plans to broaden pension coverage to include around 5 million currently uncovered workers, particularly those in self-employment and the informal economy.