Who chooses for me

We talk about offshore companies, unclear capital, Russian mafia and scandals in parliament. No, not about some obscure political combination, and for pensions. If they were not completely isolated from the media in recent weeks, so keep track of the history of the largest pension company in Bulgaria – “Trust”. And perhaps you are worried, rightly, than you will have a new owner and who he is. Positive on volume, many people began to care whether they are allocated extra money for pension and where they are.

Who chooses for me

Many people have an unpleasant surprise – the fact that they say “you are officially distributed” small amounts of their personal accounts, even the fact that they can not withdraw their money before retirement age. And what of the shortcomings of the pension system we can fix and why it is important to do? First – it’s your money, your work and you have every right to be interested in what happens to them. Second, it will depend on part of your income after retirement. Really, not much, because mandatory universal fund go only 5% of your income insurance, according to the Social Security Code of 2017 this share should be 7%. For those working in harsh conditions there is an additional provision of 7% or 12% depending on the category, which will receive early retirement. While universal schemes, contributions are shared between employer and employee, with professional all at the expense of the employer. (Supplemented at 15.40.)

And last but not least – do not care whether your money is used to finance dubious structures is a sign that you are not interested nor their future, nor that of their children.

Let’s start with the beginning – the choice of a pension fund and the difference between the various types. If you’re the majority of the Bulgarians, the choice you have not done you, and have been officially distributed. This does not mean that someone has taken the opportunity to choose from – just not done. Everyone who starts work on a labor contract must within three months to elect their own universal pension fund. When you do not, NSSI will distributed through official channels – we can visualize somewhat raffle in which a greater chance to win you have companies with more secured and lower fees. Of course, this does not mean that you can not find yourself in a small company. And then the second year you are allowed to move. But this further.

Universal Fund is mandatory for persons born after 31.12.1959 and working under difficult conditions should choose a professional. In his contributions are paid by the employer and there will come early retirement. The third type of funds are voluntary – they can insure yourself if you want to import any desired amounts and any time you choose. Such schemes have employers who want to voluntarily provide their employees.