Morocco’s Pension System Nears Crisis, Urgent Reform Needed

The debate over pension reform is back in the spotlight in Morocco. Recent figures are ringing alarm bells: the pension system, long perceived as a social shield, is facing major financial, demographic, and social imbalances. Without rapid reform, its medium-term viability is threatened.

Why is pension reform essential?

1. Regimes already in deficit

Public pension funds, particularly the Moroccan Pension Fund (CMR) and the Collective Retirement Allowance Scheme (RCAR), have been recording structural deficits for several years. Contributions from active workers are no longer sufficient to cover the pensions paid.

2. Reserves soon to be exhausted

According to projections, the CMR’s reserves will be completely depleted by 2031. Beyond this date, the fund will no longer have the means to pay pensions, risking a sudden breakdown in its commitments to retirees.

3. Demographic aging

Life expectancy in Morocco now exceeds 76 years. While this increase is good news, it increases pressure on the system: pensions must now be paid over more than 20 years, or even a quarter of an individual’s life.

4. Millions of workers excluded

Nearly 60% of Moroccan workers have no pension coverage: farmers, seasonal workers, the self-employed, and informal workers. Without reform, these populations will age without resources, exacerbating social insecurity.

5. Inequalities and complexity

The system has 9 separate regimes , each with its own rules. Public, private or semi-public: the gaps in pensions and rights are significant (8,394 DH on average in the public sector compared to 2,163 DH in the private sector). This disparity fuels a strong feeling of injustice.

6. A demographic model in crisis

The Moroccan system is based on intergenerational solidarity: in 2000, there were 7 contributors for every 1 retiree. Today, there are only 2, and tomorrow, the trend could reverse.

The “Solidarity Square”: 4 pillars for sustainable reform

Faced with these challenges, several avenues are emerging to build a fairer and more sustainable system:

Standardize the schemes: unify the rules (age, contribution period, replacement rate) and allow the portability of rights.

Upgrading the private sector: reducing the pension gap between private and public sectors and strengthening contributor confidence.

Ensuring financial sustainability: controlling deficits and anticipating demographic aging.
Strengthening intergenerational solidarity: extending coverage to informal workers and guaranteeing young workers a retirement tomorrow.

Inaction, the worst-case scenario

Every year of delay makes reform more painful and costly. Better gradual, concerted reform today than an irreversible crisis tomorrow.

Conclusion

Pension reform in Morocco is not a political choice but a national, moral and social necessity . It must allow for the construction of a financially balanced, inclusive, equitable and sustainable system , guaranteeing the dignity of today’s retirees and future generations.

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(Featured image by Evgeny Matveev via Unsplash)

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First published in LES ECO.ma. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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