Управляващите искат изготвяне на пътна карта за промени в пенсионния модел | Дневник

Key Proposal: Pension System Roadmap

Members of Bulgaria's ruling coalition have submitted a parliamentary motion to create a roadmap for pension system reforms. This roadmap, to be developed by several key institutions within six months, aims to address the increasing financial strain on the system.

Challenges Facing the System

The current system faces significant challenges, including:

• Rising Costs: Pension expenditures are soaring, reaching 24.1 billion leva this year, with roughly half funded by the state budget.
• Demographic Shifts: An aging population and increased life expectancy are placing a greater burden on the system.
• Low Pension Amounts: The current system results in low pension amounts for many retirees.

Multiple reports and analyses have highlighted these challenges, and several recommendations have been made, including increasing contributions, raising the retirement age, and considering alternative models like multi-fund systems.

Proposed Solutions and Recommendations

The proposed roadmap aims to incorporate measures such as:

• Increased Contributions: Gradual increases in social security contributions are planned, starting in 2027.
• Alignment with Life Expectancy: Experts recommend linking retirement age to life expectancy.
• Multi-fund System: The OECD recommends supplementing the existing model with multi-fund options, providing more investment flexibility.

The government's short-to-medium term budget forecasts include planned increases in pension contributions. The motion emphasizes the need for long-term financial stability and aligns with previous recommendations for better management of the Silver Fund and a clearer distinction between social welfare expenditures and public social insurance funding.