36% of Moroccans Lack Retirement Plans, Survey Reveals Stark Inequalities in Pension Coverage

A recent survey conducted by market research group Sunergia has uncovered significant gaps in retirement planning among Moroccans, highlighting widespread inequalities in access to pension coverage. The findings reveal that while 59% of Moroccans benefit from employer-provided retirement plans, a staggering 36% have no retirement coverage at all. 

Access to primary retirement plans remains uneven  

The survey indicates that the majority of Moroccans with retirement plans rely on their employers for coverage, with only 5% securing independent plans. Workers in the informal sector and retirees from private companies are the most likely to pursue individual plans, with 10% and 13% respectively reporting independent coverage. However, the lack of retirement security is most acute among informal sector workers, with 86% of this demographic entirely without coverage. This disparity underscores the vulnerability of those outside the formal employment system.

Supplemental savings plans see limited uptake  

The study also examined supplemental retirement savings, revealing that 85% of those with primary coverage do not engage in additional savings initiatives. Among the minority who do, 10% benefit from employer contributions, 4% make personal contributions, and 1% participate in salary-linked or bank savings programs. These figures paint a stark picture of a system where formal sector employees enjoy greater financial security, while informal workers face significant challenges in preparing for retirement.

Calls for reform amid growing dissatisfaction  

The Moroccan government has recently initiated reviews of the pension system to address its shortcomings and expand coverage. However, public dissatisfaction persists, fueled by rising inflation and the increasing cost of living. Many feel that the proposed reforms have yet to deliver tangible improvements or adequately address systemic inequalities. 

This sentiment was echoed during a recent rally in Rabat organized by the Democratic Confederation of Labor (CDT), which protested against the proposed strike law and criticized the government’s pension reforms as insufficient and unsustainable. Demonstrators called for more comprehensive measures to ensure fair pensions and better healthcare for retirees and workers alike.

The survey’s findings highlight the urgent need for reforms that bridge the gap between formal and informal sector workers, ensuring a more inclusive and equitable retirement framework for all Moroccans.