The Aging Society and the Rising Cost of Pensions: The National Social Security Institute Reports a Significant Increase in Expenditures for July
Sofia – The National Social Security Institute (NSSI) has revealed alarming data regarding the financial status of the country's pension system. The institution's latest report, which examines the cash performance of the social security funds as of the end of July 2025, shows a clear trend of an increasing number of pensioners and the associated costs, which calls into question the long-term sustainability of the system.
According to NSSI data, the number of pensioners reached 2,057,397 people in July 2025. This figure marks an increase of 11,431 people, or 0.6%, compared to the same month in the previous year, 2024. This seemingly small percentage increase is indicative of the demographic changes in society and the continuous growth of the retirement-age population.
NSSI experts emphasize that the increase in the number of pensioners is directly related to the increase in expenditures. The total expenditures for pensions as of July 2025 amount to 13,613.2 million BGN, which represents 56.5% of the budget planned for the entire year. Even more indicative is that, compared to the same period in 2024, expenditures have increased by 1,500 million BGN, which is a growth of 12.4%. This significant jump in the cost of supporting pensioners represents a serious challenge for the state budget and social policy.
Increase in Expenditures and Revenues: An Unequal Battle
The NSSI report also reveals other key financial indicators. The total amount of revenues for the consolidated budget of the State Social Security (SSS) as of July 2025 reaches 8,540.7 million BGN, which is 56.1% of the annual plan. Revenues also show an increase compared to the previous year, rising by 1,118.8 million BGN.
Despite the growth in revenues, the total expenditures of the SSS remain significantly higher. As of July 2025, they reached 15,358.7 million BGN, which represents 56.1% of the plan's execution for the year. Compared to the previous year, expenditures have increased by 1,603.1 million BGN.
The next most significant group of expenditures in the consolidated budget are those for the payment of cash benefits and aids. As of July 2025, they amount to 1,632.4 million BGN, which is 53.1% of the plan for the year, and are 98.4 million BGN more than the same period in 2024. This data underscores the growing financial burden on the country's social system.
The Individual Burden: Average Pension Amount and Insured Income
Against the backdrop of the overall picture, the NSSI also provides a look at the individual financial indicators of pensioners. The average monthly amount of a pension for a single pensioner for July 2025 is 1,015.22 BGN. A comparison with the previous year shows that the average pension has increased by 81.28 BGN, or 8.7%, which is the result of recent pension indexations and updates.
At the same time, the institution noted that the average insured income for the previous month, June 2025, was 1839.37 BGN, which serves as the basis for calculating future pensions and benefits.
The NSSI report also reveals the budget execution of the Teachers_q_ Pension Fund, whose revenues as of July 2025 are 84.6 million BGN, and expenditures are 66.9 million BGN. The reported revenues increased by 13.9 million BGN compared to 2024, and expenditures increased by 9.8 million BGN. This data shows that even specialized funds are observing a general trend of growth in expenditures and revenues.
In conclusion, the data published by the NSSI presents a complex financial picture to the public. The increasing number of pensioners and the significant rise in pension expenditures represent a challenge that requires careful analysis and the development of long-term strategies to ensure the financial stability of the pension system in the future.