Our pension model is solidarity-based. If we do not take measures so that more children are born and more people work, there is no way that pensions can increase. This was stated by the municipal councilor from “BSP for Bulgaria“ Vanya Grigorova in the program “From the Day“ on BNT, quoted by novini.bg.
The demographic crisis is a global problem and the pension model should also be affected. It is normal for the burden to shift from the first to the second pillar in the future, said economist Nikola Filipov.
This model that has been adopted in Bulgaria is still new, it is only 20 years old and is borrowed from the Anglo-Saxon model. We cannot currently analyze whether it is good or not. It generally works. In Bulgaria, we see less accumulation in individual accounts. The main problem is that we had a gray economy for a long time and people preferred not to insure themselves, the economist pointed out.
According to Vanya Grigorova, the economy should be brightened outside the pension pillars. She specified that the problem can also be solved, in addition to increasing the pension contribution, by transferring part of the pensions to the Ministry of Social Affairs.
The contribution to private pension funds should be updated. If we want to receive a better service, it is normal to pay more, said Filipov.
The newly granted pensions from the National Social Security Institute are about 100,000. Those for insurance length of service and age are about 24,000, private pension funds under 25,000. The average pension in private pension funds is 94 leva, Grigorova cites data. She was categorical that there is no such pension system as in Bulgaria anywhere in the world and defined it as Chilean.
For a long time, private pension funds generated negative profitability. In recent years, they have been positive, but these funds cannot catch up with the profitability provided by the National Social Security Institute, she explained.
The whole ideology of the pension system is to preserve the purchasing power of citizens, said Nikola Filipov.
Grigorova was categorical that the retirement age should not be increased. However, her interlocutor did not agree. According to him, this must happen so that the first pillar does not go bankrupt. He added that the contribution must also be increased.