Устойчивост и справедливост: предизвикателства и перспективи пред пенсионната система в България
Sustainability and Fairness: Challenges and Prospects for the Pension System in Bulgaria

Author(s): Radostin Vazov
Subject(s): Politics / Political Sciences, Politics, Economy, Law, Constitution, Jurisprudence, National Economy, Business Economy / Management, Civil Society, Economic policy, Welfare systems, Socio-Economic Research, Labour and Social Security Law
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: pension system; demographic challenges; pension reform; pension funds
Summary/Abstract: The pension system in Bulgaria stands at a crossroads, facing significant demographic, economic, and social challenges. Population aging, emigration of the working-age population, and the rising dependency ratio between workers and retirees exert substantial financial pressure on the system. In recent years, the share of people aged 65 and above has grown, while poverty and social inequalities remain high, particularly among women and vulnerable groups. The current three-pillar structure, comprising a public pillar, mandatory funded schemes, and voluntary pension plans, offers diverse options for retirement security. However, it requires substantial improvements. Private pension funds are underdeveloped, and public trust in them is limited due to a lack of financial literacy and accessible information. Financial sustainability remains a challenge, as a significant portion of pension expenditures is covered by transfers from the state budget. The article proposes possible solutions, including the introduction of life-cycle funds, improvement of funded scheme management, and enhanced transparency. Other key recommendations include promoting longer working lives, increasing the adequacy of minimum pensions, and expanding professional pension schemes.

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