THE ROLE OF THE DEMOGRAPHIC FACTOR AS PART OF THE SOCIAL SECURITY SYSTEM

Abstract

Global, incl. and European demographic trends are typical for Bulgaria after the 1960s, when the influence of the post-war factors for accelerated reproduction of the population was exhausted. The industrialization of Bulgaria during this period "pulls" huge for our scale groups of rural population and directs it to the cities and industries of the economy. In this way many settlements and regions of the country are depopulated and this is especially visible in the last 10-15 years. The rate of population aging is increasing, the natural population growth is negative. The number of people over working age is increasing as a percentage of the population in Bulgaria, which in turn burdens the financial security system. The aim of this report is to show the essential role of the demographic factor as part of the social security system. The factors of mortality, birth rate and natural population growth will be expressed in a table, in order to show the clearly expressed role of the demographic factor as significant in the social security system. Migration also plays a key role in the dynamic world we live in for the social security system. Population migration is a demographic process consisting of changes in the residence of people inhabiting a certain area. Emigration is a process of leaving the population inhabiting a certain territory, while immigration is a process of settling people from other territories in a given territory, which leads to an increase in its population. The results of the study will clearly show that the continuing negative trends in Bulgaria regarding negative natural growth will have an increasing impact on this system, because able-bodied people will decrease, and hence there will be less social security contributions and with reduced contributions, there will be less social security funds. The main recommendations that can be made to improve the social security system in Bulgaria is that there is a clear trend in recent years, more and more people need social security. Therefore, a clear increase strategy for the birth rate is needed in order to influence the social security system as well. With a larger number of people of working age and a low unemployment rate, there will be a larger relative share of social security contributions. In conclusion, it can be summarized that the demographic factor is essential for the current model of the social security system in Bulgaria, rapid and timely reforms are needed to improve the social security system.