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Boom of new pensioners in our country.

The newly granted pensions equaled a 5-year record.

Last year they were over 97,000. 

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. The demographic situation in Bulgaria is unfavorable. The labor force in the country currently numbers about 3.290 million people, with the largest share being the population in the age range of 44-55 years. They occupy about 25 % of the labor force. There is a strong aging and reduction of the labor force," stated in "Bulgaria morning" chap.

Dr. Alexandra Ravnachka from the National Institute of Geophysics, Geodesy and Geography at the BAS. 

She is categorical that in the coming years the number of pensioners will increase and a process of slower entry of new workforce will be observed.

According to her, the population is aging and we are working until the end. 

"In 2000, there were 124 new employees per 100 people leaving the labor market, while now there are only 64 new employees per 100 people leaving the labor market. In 10-15 years, the working people will not be able to provide the necessary contributions for pensioners," warned Ravnachka and added, that the working population in our country is only about 59%.

There is a tendency for people of pre-retirement age to continue working - this has a psychological and financial-economic nature.

A large part of the population neither works nor studies.

"This resource must be actively included in the labor market. More active inclusion of working women is necessary. The health condition of our workforce is also extremely worrying. A large part of the working-age population suffers from hypertension and diabetes," he added. Dr. Ravnachka.

Economist Daniel Vassilev commented to Bulgaria ON AIR that this year we have an unprecedented deficit for the payment of pensions - over BGN 10 billion. 

"In 2019, it was over 3 billion. We have a 3-fold increase in the deficit in the pension system. This deficit is covered by our taxes, mainly VAT. There is about one pensioner for every three people of working age. By 2050, every two working people will lose one pensioner, the trend will only worsen. 2050 is not far at all. According to the European Commission, by 2060, one working person will support one pensioner," Vassilev explained.

The economist noted that

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"One option is for this system to be suspended, for people to provide for themselves and for it to be entirely in the private sector. The second option is to continue to accumulate ever larger deficits. I expect inflation of almost 20% to officially seem like a walk in the the park compared to inflation, which we have yet to see. The ECB has not yet returned to printing in the course of the recession to come," Vasilev opined.

NOI explains why the official recalculation of pensions takes place on April 1