Balgarianovinite.com Bulgaria’s planned multi-fund pension system, set to take effect on Jan. 1, 2027, will modernize the country’s retirement savings model by allowing age-based investment strategies and greater choice for contributors, Evelina Miltenova, head of the Bulgarian Association of Supplementary Pension Security Companies (BASPPSC), said in an interview with BTA. The reform aims to improve long-term returns while maintaining strict regulation and protection of savers’ funds.
She said the decision by Parliament to adopt the reform is one of the most important steps for the future pensions of working people. The law has been promulgated, and pension companies are now preparing for the system to become operational on January 1, 2027.
The reform will replace the current system, where all savers’ funds are invested under one conservative strategy regardless of age, with age-based investment profiles: dynamic, balanced, and conservative sub-funds. Younger contributors will be able to pursue higher-return investments, while savings will gradually shift to safer assets as retirement approaches. The model follows the widely used “life-cycle” approach applied in many advanced economies.
Miltenova stressed that the reform does not increase risk, as investments will remain strictly regulated and supervised. Contributions to private pension funds remain legally guaranteed and inheritable.
A key change is that insured individuals will, for the first time, be able to choose how their pension savings are invested, although an automatic allocation mechanism will apply for those who do not make an active choice. Participants will also be allowed to change funds or pension companies annually.
She noted that future pension adequacy also depends on contribution levels, which remain at 5% instead of the originally planned 7%, and on reducing undeclared income in the grey economy.
Pension companies face significant organizational and technological work to implement the reform, alongside efforts to improve financial literacy among savers. The model draws on international experience from EU and OECD countries, including Croatia, Estonia, Poland, Romania, and Chile.
Despite limitations of the current system, pension funds have delivered solid results, distributing more than BGN 5 billion in returns to over four million insured individuals in the past three years. Miltenova emphasized that pension reforms produce visible effects over the long term, typically within 10-20 years. Multi-fund Reform Seen Strengthening Bulgaria’s Private Pension Pillar – Industry Expert 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-03-27 06:41:09 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law