People insured in the second pension pillar have 20 more days, until 30 November, to pick a sub-fund for their account for the first time, the Bulgarian Association of Supplementary Pension Insurance Companies (BADDPO) has reminded them. Anyone who does not choose will be placed in a sub-fund automatically, based on age.

The first choice window lasts three months. Choosing is not compulsory, and people can change their choice every 12 months, the association says.

Under automatic placement, people up to 50 go into a dynamic sub-fund. From 50 until three years before retirement, the account is in a balanced one. After that, savings must go into a conservative sub-fund, so that swings on world markets do not hit the returns already earned.

The multi-fund model, under which people pick from several sub-funds, starts on 1 January 2027. Fees charged by pension insurance companies will also start to fall then, which BADDPO says meets public expectations.

Pension savings are personal and guaranteed, earn returns and can be inherited, the association says. It says the launch of multi-funds is a good time for everyone to check which fund their account is in and how much money it holds. People can check through the National Revenue Agency (NAP) with a personal identification code (PIK) or by phone on 070018700.

More information is available on the websites of the pension insurance companies and on pension.bg, the association's site. The companies answer questions and advise insured people.

In the first half of this year, the companies earned returns of €584m. Over three and a half years, the total is more than €3.4bn. The money is shared among the accounts of insured people, based on their monthly gross contributions of 5% of insurable income.

The Council of Ministers put forward the changes to the Social Insurance Code, and parliament passed them at second reading in early March. Under the law, the companies will compete with each other, and their income will depend on the returns they earn for insured people. In its explanatory notes, the cabinet says the model lets people choose how their savings are managed, taking into account how much risk they can bear at different stages of life.