Slovenia Weekly: Caring for elders, a commitment to the future

The proportion of older people in Slovenia is expected to increase significantly in the coming decades, which means that the share of gross domestic product (GDP) allocated to pensions will also increase. Both the European Commission and the OECD have warned Slovenia about this, projecting in 2021 that pension expenditure, which currently accounts for 10.3% of GDP, will exceed 16% by 2050.

However, when a team of experts from the Ministry of Labour, Family, Social Affairs and Equal Opportunities, the Ministry of Finance, and the Institute for Economic Research analysed these forecasts in detail, they identified flaws in the underlying assumptions. Through meticulous argumentation, Slovenia successfully convinced the European Commission to revise its projections. As a result, the updated forecast published in 2024 presents a less pessimistic outlook.

Despite the revision projection, the core objectives of the pension reform remain unchanged: to prepare the system for demographic transition, ensure its stability and sustainability, and enhance the well-being of pensioners, particularly the most vulnerable groups. Two additional goals include strengthening public trust in the system and simplifying its structure where possible.

On Wednesday, social partners signed an agreement on the alignment of the draft pension law. Prime Minister Robert Golob emphasised that respectful dialogue leads to the most effective and balanced solutions. "Pension reform is essential due to an ageing society and the need to ensure the fiscal sustainability of the pension system," he stated.