The pension reform is supported by various politicians and follows recommendations from the Organization for Economic Cooperation and Development. This was stated by Vladimir Nechev in the studio of "Denyat na Zivo" on NOVA NEWS. Citizens will be able to invest their pension insurance in three types of funds - dynamic, conservative and balanced, he explained. The goal is that through investment, citizens de facto receive higher pensions.
The expert said that this model works in other European countries and each person is free to choose how to invest their money, with the return on income expected to increase to 7% in the coming years. He emphasized that the invested funds have a strict limit, which aims to ensure security and transparency of the funds.
"Anyone who has not chosen the type of fund by January 1, 2027, will be automatically allocated according to their age. This is planned to be the date from which the change will become a fact," Nechev also said.