Demographic Fund arriving, shortfall in pension system likely to persist

Slovenia is among the EU member states where public finances, especially spending on pensions and healthcare, are expected to be hit hardest by the ageing population.

With the current ratio between the active working population and pensioners standing at about 1.5 and expected to only decline further, a demographic fund as a measure meant to alleviate this pressure had been announced by several governments in the past.

Around 80% of the pension insurance contributions are currently coming from workers and employers, while the lion's share of the rest is covered by the state budget - the preset contribution is around EUR 1 billion a year or around 10% of the entire budget expenditure.

The new fund, as envisaged by the Janez Janša government, which is expected to discuss it soon, will take over the assets currently held by Slovenian Sovereign Holding (SSH),...

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