The article sheds light on the ongoing struggles of pensioners in Serbia, where the average pension remains insufficient to cover even the most basic living expenses, despite recent increases. Although pensioners can now afford slightly more in terms of groceries, their financial situation becomes dire once monthly bills and other essential costs are factored in.
Over the past 15 years, pensioners in Serbia have seen a mixed impact on their quality of life. While the average pension has more than doubled since 2010, rising from 19,847 dinars to 45,732 dinars by May 2024, it now covers a smaller percentage of both the average salary and living costs compared to 15 years ago. In 2010, the average pension covered 59.3% of the average salary; however, by 2023, this figure had dropped to a low of 43.9%. After recent increases, pensions now account for 45.6% of the average salary, still far from the desired 60%.
When it comes to covering living expenses, the situation is equally challenging. In 2010, the average pension could cover 71.3% of the minimum cost of living and 37.6% of the average consumer basket. Years of declining purchasing power and financial austerity measures, which included pension cuts starting in 2014, have taken their toll. By 2017, pensions could only cover 66.1% of the minimum and 34.3% of the average cost of living. Although there has been some improvement in 2024, with pensions covering 85.5% of the minimum and 44.2% of the average cost of living, many pensioners still struggle to make ends meet.
Looking at the past 15 years, while there has been a slight improvement in the ability of pensioners to purchase basic food items, this gain is offset by significant increases in the cost of utilities and other essential expenses. For example, in 2010, a pensioner could buy 370 kilograms of bread, 371 liters of milk, 60 kilograms of pork, and 105 kilograms of chicken. By 2017, these amounts had decreased to 287 kilograms of bread, 272 liters of milk, 49 kilograms of pork, and 90 kilograms of chicken. In 2024, the situation has improved slightly, with pensioners able to buy 397 kilograms of bread, 309 liters of milk, 62 kilograms of pork, and 145 kilograms of chicken.
However, these statistics do not capture the full reality. More than 60% of Serbia’s 1.65 million pensioners, or over 990,000 people, receive pensions below the national average, with many living at or near the poverty line. Around 440,000 pensioners receive a minimum pension of less than 25,000 dinars, with 140,000 of them living below the poverty threshold. The situation is particularly dire for those receiving family, disability, or agricultural pensions, with many receiving as little as 19,600 dinars.
The growing gap between the highest and lowest pensions is exacerbated by every new pension increase. Despite these increases, pensions have struggled to keep pace with inflation. Pensioners’ associations and unions are calling for a reform of the pension system to raise the income of the most vulnerable above the poverty line and ensure that pension increases are automatically tied to wage growth and inflation. However, there are no indications that such reforms will be implemented soon.
The reality that most pensions do not cover even basic living costs is further evidenced by the growing number of elderly people who continue to work after retirement, often in the informal sector. Estimates suggest that around 100,000 pensioners in Serbia supplement their household budgets in this way. While the situation is difficult in Serbia, the article notes that pensioners in neighboring countries do not fare much better, with only Croatia and Montenegro offering higher average pensions than Serbia. Croatia’s average pension stands at 515 euros, Montenegro’s at 511 euros, while Serbia’s is around 390 euros. Other neighboring countries, such as North Macedonia, Bosnia and Herzegovina and Bulgaria, have even lower pensions.
In summary, while there have been some improvements, Serbia’s pension system continues to fall short of providing a decent standard of living for many elderly citizens. Calls for systemic reform grow louder as the gap between pension income and the cost of living widens.
