Neglected pensioners under the rule of the Svoboda party: we all contribute to the pension fund, but those in power would share the privileges with only a select few

By: Vida Kocjan

Pensioners are one of the most vulnerable groups in Slovenian society under the current government. Despite years of work and contributions to the pension fund, many of them now face poverty, social exclusion, and uncertainty.

As many as 58 percent of all pensioners receive pensions below the poverty risk threshold. The reality for pensioners under the current government is far from rosy.

They were cheated from the start

Robert Golob’s government deprived both pensioners and disabled individuals of a 4.5 percent increase in pensions and allowances. In 2023, the amounts were effectively lower by that percentage. The government then passed a resolution and promised that pensions and allowances would increase by 4.5 percent – the same percentage by which public sector wages were raised. However, none of this happened; the government failed to fulfil its own resolutions and commitments. The entire coalition later opposed the increase as well.

Prime Minister Robert Golob publicly promised the increase in the National Assembly on October 24^th, 2022, and Luka Mesec confirmed the government’s decision on October 27^th, 2022.

A new law will worsen poverty

More than half of all Slovenian pensioners receive pensions below the poverty threshold. Among them are individuals who have worked and paid contributions for a full 40 years. Meanwhile, the government is preparing a new pension reform that will worsen the situation for future retirees. The reform plans include stricter retirement conditions by raising the retirement age, lowering pensions, and eliminating extraordinary adjustments, which would no longer be included in the law. Regular adjustments are expected to be tied to inflation rates, significantly worsening future pension adjustments.

The reform aims to save the budget approximately 600 million euros, a saving that can only be achieved by reducing pensions or further increasing contributions to the pension fund. At the same time, the ruling parties (Gibanje Svoboda, SD, and Levica), along with sympathetic media outlets, claim that pensions will be higher under the new legislation, which is expected to be adopted this year. However, the planned 600 million euros in savings clearly indicate otherwise. Additionally, the number of pensioners is expected to continue increasing, which has been a constant trend in recent years.

The greed shows no end

We are living in a time when pensioners are sinking deeper into poverty. Even those who contributed to the pension fund for 40 years now receive pensions below the poverty line. Moreover, the government has withheld extraordinary pension adjustments, which, while not legally mandatory, pensioners had received in previous years. But that is not all – the government is planning new taxes, including a property tax. Some decisions have already been made, such as the new long-term care tax. Starting July 1^st, 2025, everyone will be required to pay this tax, with pensioners obligated to pay one percent of their net pension. Over a full year, this will amount to 12 percent of their net pension – roughly one-eighth of their annual income. For a pension of 800 euros, this means about 100 euros less annually.

But that is still not all. Everyone is also required to pay a health insurance contribution, currently set at 35 euros per month, totalling 420 euros annually. Further increases are expected. This contribution was voluntary before the current government, which had promised to abolish it, yet occasionally still falsely claims it has been abolished. It has not – they made it mandatory. Those who fail to pay risk having their income or assets seized. A similar scenario is expected with the new property tax, which may leave many elderly individuals destitute due to the greed of the ruling leftist coalition.

At the same time, the government has introduced legislation to grant special pension supplements to select privileged cultural figures. This distribution of taxpayer money to cultural workers would come at the expense of those who have contributed to the pension system and are still contributing, resulting in lower pensions for them. In fact, the coalition has already passed the so-called “golden supplements” law for privileged individuals. However, due to a referendum initiative led by SDS, the law’s implementation has been delayed and may ultimately depend on the voters’ decision.

Declining purchasing power

One of the biggest problems pensioners face is the erosion of the real value of their pensions. Inflation and rising costs of living and energy have made it difficult for many seniors to cover their basic needs. While the minimum wage has increased significantly, pensions have lagged far behind real living costs. Recent pension adjustments have not kept pace with inflation, forcing many pensioners to count every cent during their daily purchases.

Broken government promises

During the 2022 election campaign, the coalition promised decent pensions and an improved quality of life for seniors. They made grand announcements about extraordinary adjustments, better healthcare services, and greater social inclusion for the elderly. However, under Robert Golob’s leadership, no major systemic improvements have been made. For a while, pensioners received mere crumbs, but even those have now stopped. Golob recently stated in the National Assembly that the government is “working on long-term solutions”. If anyone believes him. The reality is that this government is not protecting pensioners from poverty – it is actively pushing them into it. The lack of support for the elderly leads to their social isolation.

What did Golob’s coalition promise before the elections?

Gibanje Svoboda party:

• Pension adjustments aligned with inflation and wage growth, plus extraordinary adjustments for the lowest pensions.
• Raising the minimum guaranteed pension to a more dignified level.

Social Democrats (SD):

• Increasing the lowest pensions above the poverty risk threshold.
• Better pension adjustments to keep up with living costs.

Levica party:

• Raising pensions to a level that ensures a decent life, with a focus on improving the situation of the poorest pensioners.
• Abolishing supplementary health insurance to reduce healthcare costs for pensioners.
• Improving living conditions for the elderly, including affordable non-profit housing and better nursing homes.

None of this has happened.