The Slovenia Insurance Supervision Agency (AZN) published a podcast-style explainer on Slovenia’s pension system, arguing that demographic ageing makes greater use of the second and third pillars necessary alongside the public pay-as-you-go scheme. The discussion focuses on how supplementary pension saving works in practice, the incentives and safeguards attached to it, and what recent legal changes mean for employers. The piece notes that the worker-to-pensioner ratio has fallen from around three-to-one in the 1980s to about 1.5-to-one, raising questions about whether the first pillar alone can sustain living standards, with the average pension described as roughly 58% of the average wage against a long-term policy objective of about 70%. It sets out that collective supplementary pension insurance arranged through employers can add around 10% to 15% to pension income and, in some cases, 30% to 40%, and reports around 600,000 supplementary pension contracts in Slovenia, of which about 400,000 are active. Tax incentives highlighted include premium relief up to 5.866% of gross salary capped at EUR 3,224 per year, exemption of investment returns from tax, and 50% of annuity payments being tax-exempt, alongside statutory maximum management fees being reduced from 1.0% to 0.9% in 2026 and to 0.8% from 2027. AZN also summarises its supervisory approach, including regular reporting, capital adequacy checks, on-site reviews and transaction oversight by custodian banks, and stresses that saver assets are segregated from providers’ assets and that cryptocurrencies are not permitted investments. Looking ahead, a law that took effect on 1 January 2026 requires employers with more than ten employees to hold a discussion with employees by 1 January 2028 on establishing collective supplementary pension insurance.
Slovenia Insurance Supervision Agency 2026-02-25
Slovenia Insurance Supervision Agency podcast explains the case for supplementary pensions and highlights new employer talks requirement by 2028
The Slovenia Insurance Supervision Agency's podcast explains the need for increased use of the second and third pension pillars due to demographic ageing. It highlights the decline in the worker-to-pensioner ratio and discusses supplementary pension savings, tax incentives, and recent legal changes affecting employers. The agency outlines its supervisory approach and notes a new law requiring discussions on collective supplementary pension insurance for employers with over ten employees by 2028.