More than half of Morocco’s workforce has no retirement coverage, new government figures show, as the country’s pension funds face looming insolvency.
The data, released after the first meeting of the Pension Reform Committee, indicate that out of 11 million active workers, only 3.5 million are employed in the formal private sector, 970,000 are civil servants, and 187,000 work in public institutions. Nearly 6.3 million workers are left without any pension protection.
The Moroccan Pension Fund is under the most immediate pressure, with projections showing it could run out of reserves by 2028.
The Collective Retirement Benefit Scheme, which held 135 billion dirhams ($13.6 billion) in reserves in 2021, is expected to remain solvent until 2052. The Social Security Fund, covering private-sector workers, may begin posting deficits by 2038.
Experts have long warned of the looming crisis. A national commission in 2013 recommended raising the retirement age to 65, increasing contribution rates from 20% to 28%, and calculating pensions based on the average salary of the last eight years instead of the last two. Only some of those measures have been implemented.
The current reform plan proposes restructuring the system around two poles, public and private, with a unified basic scheme, a mandatory points-based complementary system, and an optional capitalized scheme.
Officials also want to create a special fund to finance reforms while limiting the impact on public finances and business competitiveness.
With public debt rising, demographics worsening, and the number of retirees growing faster than the active workforce, officials warn Morocco could face a deeper social and economic crisis within the next decade if reforms are delayed.
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