Podcast in English
Text size
Bulgarian National Radio © 2024 All Rights Reserved

NSSI proposes reforms to secure Bulgaria's pension system

In 2023, there will be 68 pensioners per 100 insured workers in Bulgaria. By 2070, the ratio is expected to be 78 pensioners per 100 insured workers. This information comes from a 2024 report by the National Social Security Institute, which forecasts the state of the pension system in 2070 in the face of an ageing population, increasing life expectancy and a declining number of contributors, according to online newspaper The Dnevnik.

To stabilise the pension fund, the institute proposes two options. The first option is to gradually increase the pension contribution rate for those born after 1959, starting in 2025. This increase would be one percentage point every five years and would reach 19.8% of insured income in 2045.

The second option is to change the formula for the annual pension adjustment, which currently takes place on 1 July. At present, pensions are increased by half the rate of inflation and half the growth in insured earnings from the previous year. However, if pensions were only adjusted for inflation, this would reduce pension costs in the medium and long term, according to the institute.



Последвайте ни и в Google News Showcase, за да научите най-важното от деня!
Listen to the daily news from Bulgaria presented in "Bulgaria Today" podcast, available in Spotify.

More from category

Rumen Radev at the business forum in Singapore

Rumen Radev in Singapore: Investing in people and partnership are the key to the future

“Investing in people, education, innovations and technologies is the key to success in the future,” said President Rumen Radev at the opening of the business forum in Singapore, in which representatives of companies from Bulgaria and Singapore are..

published on 11/22/24 10:17 AM
European Commissioner for Home Affairs Ylva Johansson

European Commissioner Ylva Johansson is optimistic about Bulgaria and Romania’s entering the Schengen Area by land soon

“It’s time to lift internal border controls now,” European Commissioner for Home Affairs Ylva Johansson believes. In an interview with RFE/RL she said she was optimistic about Austria’s decision. Asked what the arguments are for blocking the..

published on 11/22/24 9:45 AM
Constitutional Court building

Constitutional Court opens case following President Radev’s request for the constitutional changes to be annulled

The Constitutional Court has opened a case following the request by President Rumen Radev for the amendments to the Constitution, endorsed by the 49 th National Assembly, to be declared unconstitutional. These amendments concern the lifting of the..

published on 11/22/24 9:13 AM