Skopje, 9 April 2026 (MIA) — The average age in the country rose from 32 in 2000 to nearly 42 in 2024, driven by a low birth rate and high levels of emigration. This trend has left the nation with fewer workers to support a growing number of retirees, according to a new report released Thursday by the State Audit Office.

The audit, which covers 2014 through June 2024, found that the country's senior care and pension systems cannot meet the needs of one of the fastest-aging populations in Europe. 

"The Republic of North Macedonia is undergoing one of the fastest demographic aging processes in Europe," auditors point out.

The demographic shift is visible in schools. The number of first-grade students has dropped by 2,774 compared to six years ago. The data shows an even wider gap for high-school students: of 22,585 live births, only 14,771 students eventually graduated from high school.

According to the report, the working-age population is expected to shrink by nearly 470,000 people by 2055. By that same year, the number of people over age 80 is projected to increase sixfold — from 22,000 in 2024 to 144,000 in 2055 — leaving fewer workers to support a much larger elderly population.

Auditors warn that the state pension fund cannot support itself even now without heavy state subsidies. Spending on pensions consistently exceeds the money coming in from worker contributions. 

Pension amounts grew to an average of 27,143 denars by late 2025. However, auditors criticize recent "linear" pension increases, noting they were not supported by growth in wages or the number of workers, but by more government borrowing and transfers.

Although the government continues to pay pensions on time, the country faces a "significant fiscal risk" as it relies on emergency budget transfers to subsidize the pension system’s deficit.

"From 2014 to 2024, the share of budgetary funds in the total revenues of the Pension and Disability Insurance Fund ranged between 32.6% and 43.6%. In 2024, transfers from the central budget amounted to 42.474 million denars (approximately 690.6 million euros). Projections for the end of 2025 indicate a further increase in these transfers, representing a significant fiscal risk to the state budget," the report says.

Without intervention, auditors warn that pension subsidies could reach 7.4% of the nation’s entire GDP by 2057.

Also, the audit found that the country is unprepared to care for its seniors. The state has been without a dedicated national strategy for the elderly since 2020.

"The elderly care system is insufficiently developed. Following the expiration of the National Strategy for the Elderly in 2020, the state has not adopted an active, comprehensive strategic document on the care for persons aged 65 and above for a period of seven years," the report says.

Currently, seniors have minimal support. Less than 1% of seniors receive home care services, which are unavailable in 31 municipalities. In existing nursing homes, there are only seven beds available for every 1,000 residents over age 65. Most care still falls on families and the informal sector.

"This situation points to the need for urgent systemic reforms," auditors say. Proposed measures include: increasing the retirement age; adjusting pension contribution rates for workers; diversifying where pension funds are invested; and expanding home-care services and nursing home capacity nationwide. mr/