“Democratic Bulgaria” proposes that the state invest 1,000 euros in an individual account "Future" for every newborn baby from January 1, 2027. The bill provides for the money to grow as a personal investment asset, to which the family can constantly add funds, but the account will remain inviolable until the child grows up and turns 60.
“We have been working on this initiative, which is one of the largest since the creation of “Democratic Bulgaria” with author Yordan Ivanov from the DSB, for more than six months. The idea is that from January 1, 2027, the state will invest 1,000 euros in the personal account of every Bulgarian child, which after 60 years will grow to nearly 300,000 euros nominally. This will cost only 50,000 euros per year to the state budget, but it will be a huge investment in Bulgarian children and their future, said the co-chair of “Yes, Bulgaria” Ivaylo Mirchev.
Relatives and employers will be able to add funds to the account at their discretion, and each parent will be able to monitor via a mobile application how the money invested in global stock market indices with an average yield between 8% and 10% is growing. After turning 18, young people will also be able to track the growth of their funds. Their inviolability and proper investment will be guaranteed by the authority of the Bulgarian National Bank, the Ministry of Finance and the Ministry of Labor and Social Policy, which will create a kind of common board.
“Similar ideas have already been implemented or are in the process of being implemented in countries such as the USA, Germany and Greece. The money will be inheritable and allow for a different approach to managing money and the future of our children, regardless of whether they were born in the country or abroad. We are starting political consultations with the other parliamentary groups, because this idea is non-partisan and is extremely important for Bulgaria and future generations”, Mirchev emphasized.
The co-chairman of “Yes, Bulgaria” Bozhidar Bozhanov added that these are not risky investments. Instead, the state will be able to direct money not just into the future of children, but also into all Bulgarian families in contrast to the boom in quick loans and the growing gambling addiction. Yesterday, the formation announced its support for the complete ban on gambling.
“This is extremely important for the development of the Bulgarian family in the long term and we hope that the National Assembly will unite around the initiative. Citizens will be able to calculate how much money will be in the respective “Future” account after 60 years. The developed website also offers different scenarios of how this money grows. Thanks to the investment in the markets, the funds will multiply many times and will reach about 300,000 euros, without investing additional money. If such money is given, the amount can grow even more”, Bozanov was categorical.
In response to a journalistic question, it was emphasized that the legislative idea has nothing to do with pensions or social benefits, but represents a modern financial instrument and an investment in the future beyond savings. In the event of a life-saving operation, the money will be available even before the age of 60.
“The longer the period stipulated in the law, the more the compound interest will allow the amount to grow even more significantly compared to the beginning. The child is born, the money automatically enters the account, without the parents doing anything, and from then on everyone decides for themselves how much to invest. If there are families who do not want to use the "Future" account, this will, of course, be possible, Bozanov concluded.