site.btaSteep Rise in Retirement Age Unnecessary for Now, National Social Security Institute Governor Tells BTA

"Considering the financial circumstances of the elderly and the life expectancy at age 65, which is way lower than in the other EU Member States, I don't think that a steeper increase of the retirement age is needed at this stage, at least not for people of the [commonest] Work Category 3," Vesela Karaivanova, who was recently elected Governor of Bulgaria's National Social Security Institute (NSSI), told Borislava Bibinovska in an exclusive BTA interview. 

After the retirement age reaches 65 for both men and women in 2037, as legislated in 2015, it will be set in line with changes in life expectancy, she explained, replying to a question.

According to NSSI's current estimates, scrapping the BGN 3,400 cap on pensions would cost an extra BGN 5.2 million monthly. Increasing the maximum pension to BGN 3,600 would benefit 3,000 pensioners and would require spending BGN 1.4 million monthly, Karaivanova pointed out, approached for comment on ideas to this effect.

"Given the annual adjustment of the minimum work-contingent pensions and those above the minimum, if the maximum pension remains unchanged, ever more people, who have been socially insured on higher income, would be deprived of the actual amount of the pension to which they are entitled," the NSSI head noted, arguing that a regular adjustment of the cap would build public confidence in the system and would motivate people to pay retirement-insurance contributions on their real high incomes. Still, such an adjustment would also entail a requisite rise of the maximum contributory income.

Asked about the Pensions Fund deficit, the expert explained that according to the 2024 actuarial report of the NSSI, the retirement insurance contribution rate should stand at 37.5% of the personal income, whereas the actual rate is 16.3%. The 21.2% shortfall is covered by a transfer from the central government budget.

She attaches prime importance to applying a holistic approach to the social protection of the elderly, which presupposes better effectiveness of the public funds invested in safeguarding against poverty and ensuring a decent living standard. 

During Karaivanova's term, the Institute will also prioritize the lev/euro changeover on January 1, 2026. Pensioners should rest assured that their pensions will be rounded up entirely to their benefit, she emphasized.

In her interview for BTA, the Governor also discussed the ongoing improvement of NSSI's e-services and the provision of reliable digital solutions to its clients through the one-stop-shop Unified Portal for Electronic Services with user-friendly access.

There are plans to set up mobile teams and improve the operation of the Institute's reception centres, even by expanding the scope of places where services are provided, so as to enhance servicing the elderly and residents of outlying areas.