Morocco’s pension system is buckling under the weight of a fragmented structure and mounting financial strain, according to the latest assessment by the country’s insurance and social welfare regulator. The current setup is divided among multiple pension funds that serve both public and private sector workers, each operating under its own rules, contribution models, and pension calculation methods. This patchwork system—already fragile—is now grappling with growing demographic and financial imbalances that threaten its long-term survival.
In the public sector, two main funds dominate. The Moroccan Pension Fund handles the pensions of civil servants, local government employees, and staff at public institutions. Based on a pay-as-you-go model, pensions are calculated using the average salary over the final eight years of service. Since 2016, the retirement age has been gradually increased to 63. Alongside it operates the Collective Retirement Allowance Scheme, which covers another subset of public workers. This plan calculates benefits based on total career earnings and adjusts payments according to wage developments over time.
In the private sector, employees are enrolled in the National Social Security Fund, which also relies on a pay-as-you-go system. Retirement is set at 60, and benefits depend on declared earnings and the number of contribution days. A complementary scheme—initially reserved for companies—has been managed by the Moroccan Interprofessional Retirement Fund (CIMR) and, since 2017, has expanded to include self-employed workers. This hybrid system combines traditional pay-as-you-go elements with a capital-funded model.
Beyond these major funds, several niche pension schemes remain in place for certain liberal professions and autonomous public entities like Bank Al-Maghrib and the National Office of Electricity and Drinking Water (ONEE), each running its own tailored system.
This fragmented landscape is under increasing pressure. Morocco’s aging population, longer life expectancy, and shrinking ratio of active workers to retirees are pushing the system toward insolvency. In just 20 years, the number of contributors per retiree in the civil servant plan has plummeted from 6.5 to 2.1. For the Collective Retirement Scheme, it’s down to 1.3. If no reforms are enacted, reserve funds could run dry by 2031 for the civil service fund, 2036 for the national private sector fund, and 2052 for the public-sector supplemental fund.
Adding to the crisis is the scale of Morocco’s informal labor market. Fewer than half of working Moroccans are enrolled in any retirement program, leaving millions at risk of entering old age with no financial safety net. And this isn’t just about government budgets—it’s also about quality of life. Without regular pension increases, many retirees are losing purchasing power year after year. The problem is especially acute in the Collective Retirement Scheme, where pension revaluations are rare.
The gap between public and private sector pensions is stark. On average, a retiree from the civil servant fund receives 8,557 dirhams per month, while someone covered by the private sector fund gets just 2,177 dirhams. Even more alarming: nearly three out of four elderly Moroccans receive no pension at all because they never paid into the system. These disparities are fueling deeper social inequalities.
The stakes extend well beyond individual hardship. Morocco’s pension funds collectively inject more than 85 billion dirhams into the national economy every year. As major institutional investors, they play a key role in the country’s financial markets. A collapse of the system would hurt household consumption and shake economic stability. For businesses—especially small and medium-sized enterprises—higher employer contributions could make hiring more expensive and slow job creation.
Faced with this worsening reality, the regulatory authority has called for a sweeping overhaul. Its most recent report offers a bleak diagnosis: ballooning deficits, falling contributor-to-beneficiary ratios, and reserves on the brink. Only a comprehensive reform can restore financial sustainability and ensure fairness across the system.
Talks launched in 2022 as part of a broader Social Dialogue aim to redesign the foundation of Morocco’s retirement system. Discussions are focused on issues like the legal retirement age, contribution rates, and pension caps. The goal is to guide the country toward a more inclusive model without triggering economic shockwaves.
The call for change is being echoed across Morocco’s leading institutions. The Court of Auditors, Bank Al-Maghrib, the Economic, Social and Environmental Council (CESE), and the High Commission for Planning all agree: the country needs broader coverage, unified regulations, and policies that align with Morocco’s changing demographic and economic realities.
As of 2024, the data paints a troubling picture. The civil servant pension fund reported a technical deficit of 7.3 billion dirhams. The public supplemental scheme has been in the red since 2004, and the private sector fund is now entering dangerous territory. Only the CIMR remains in surplus—for now.
Inaction is no longer an option. The country’s retirement system, once seen as a pillar of social solidarity, is now at risk of collapse. The Moroccan state faces a critical turning point: either it rebuilds the system into one that is fair, sustainable, and resilient—or it allows the cracks to widen, with lasting consequences for millions.
