Every Sixth Pensioner in Bulgaria Continues to Work after Retirement

Working pensioners in Bulgaria account for about 17% of all those who receive income from the National Social Insurance Institute. This places Bulgaria in the middle range among European countries – but what does it mean for the country’s economy?

Working pensioners are a significant proportion of the country's workforce - 12% continue to work for a variety of reasons.

Atanas Katsarchev, Chief Economist at CITUB “Podkrepa”:
“It is good for pensioners that they can earn additional income, but on the other hand it is not good for the rest of society, as wages are not attractive enough for others to apply for these jobs.”

Dimitrina Dragancheva from Ruse has 48 years of experience as a primary school teacher. Although she has been retired for nine years, she has not had a single day of rest at home.

Dimitrina Dragancheva:
“I retired with a ridiculous pension – 282 leva nine years ago. It was never adjusted, although it should have been. In the end, people with or without education, with or without years of service, caught up with me, because now, even after all the increases – so many of them – my pension is just 670 leva. It is impossible to live on that. For some people, this is pocket money for snacks, while we have to cover bills and look after our health for an entire month.”

In order to make ends meet, Dimitrina is forced to work in a shop for herbs and health foods. Alongside the need for additional income, the demographic crisis is another factor driving the demand for working pensioners.

Dobrin Ivanov, Executive Director of the Bulgarian Industrial Capital Association (BICA):
“Some pensioners remain in work as a way to continue their social integration. These are people with established work habits and high qualifications. In many cases, they also play the role of mentors, training newly hired employees. Pensioners are important for the Bulgarian economy and represent a valuable human resource.”

Nevertheless, employers point out that 13% of employees in the “Internal Security” sector are working pensioners, which creates financial instability within the Ministry of the Interior.

Dobrin Ivanov – Executive Director of BICA:
“It makes little sense that, although the law states that at this age they should be considered too exhausted to perform their duties, they are still kept on employment contracts within the system.”

Trade unions are concerned that many pensioners remain in the workforce out of necessity, due to low incomes and high inflation – cumulatively over 30% in recent years.

Atanas Katsarchev – Chief Economist at CITUB “Podkrepa”:
“The number of working poor has once again increased and now exceeds 10%, approaching 11% of all employees. This is a clear indicator of the state of the economy and the labour market.”

Against this backdrop, data from the National Social Security Institute shows that in the past ten years the number of working pensioners in the public sector has doubled.