Reuters: Bulgaria Struggling to Deal with Pension System's Strain on Economy

Views on BG | March 31, 2015, Tuesday // 09:30
Bulgaria: Reuters: Bulgaria Struggling to Deal with Pension System's Strain on Economy Photo by BGNES

For all the noisy debate in Western Europe about foreign workers, mass emigration puts economies of former Eastern Bloc members under pressure, a recent Reuters argues while discussing Bulgaria's demographic problems.

The article, which is titled "As Bulgaria Empties, Government Struggles to Dole Out Pension Pot," points to the fact that the share of Bulgaria's pension system in the central budget is currently 37.5%, up from 12.8% in 2003, partly due to "the exodus of Bulgarians since Communism fell in 1989."

Reuters quotes Labor Minister Ivaylo Kalfin as saying this could increase by 70 percent in ten years.

Against this backdrop it reminds that in Bulgaria the average age to receive old age pension is 57 and this is the EU's lowest together with Poland, Romania, Slovenia and Slovakia.

The text summarizes some of their problems in the pension system, such as employers dodging insurance contributions, a surge in claims for disability pensions, and the shrinking percentage of younger voters who are net contributors to the budget.

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Tags: pension, Retirement, Bulgaria, demographic, Ivaylo Kalfin, budget
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