Bulgaria faces pension crisis as retirees work and system shows funding gaps

Former labour and social policy minister and MEP Dr. Kristina Hristova warned that Bulgaria’s pension system is under severe financial pressure. She said contributions from workers cover only about half of the payouts, while the grey economy – estimated at 33‑34% of activity – further drains funds. Hristova highlighted a sharp rise in disability pensions, now numbering around 600,000, and called for urgent reforms despite demographic challenges.

Statistical data show that 53.6% of Bulgarian retirees continue working, driven mainly by financial necessity – almost twice the EU average of 28.6%. Low pension levels, high inflation, income gaps with richer EU states and limited personal savings are cited as key factors. The trend places Bulgaria among the EU countries with the highest share of economically‑driven senior employment, alongside Romania and Croatia.