Bulgaria introduces major pension fund reform

Bulgaria is implementing a major reform in its additional pension insurance system. Between September 1 and November 30, approximately 4.5 million insured individuals will be able to choose between three distinct sub-funds: dynamic, balanced, or conservative.

By the beginning of 2027, all pension funds will transition to a multi-fund model. Maya Ruseva of the Bulgarian Association of Companies for Additional Pension Insurance described this as the most significant reform in the sector, aimed at better protecting the interests of insured persons.

The reform is expected to significantly reduce the fees and deductions charged by pension companies for fund management. It also introduces stricter requirements for pension companies to enhance their capital stability and long-term resilience. The goal is to increase individual pension accumulations through more efficient investment of existing funds rather than by collecting higher contributions from citizens, ultimately leading to higher pensions upon retirement.