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The Algerian retirement system is generally perceived as a contribution system, but with partial redistribution. This article has a two-pronged objective, to confirm the redistributive nature of Algeria’s retirement system and to determine whether this (vertical) redistribution system serves to reduce inequalities in pension amounts. To that end, we begin with a forward-looking study of the Algerian retirement system. Following an actuarial approach, we then calculate the individual internal rates of return on the basis of a sample of insured individuals born between 1945 and 1990. In the light of this information, we seek to analyse inequalities in pension amounts in Algeria.