If you have a high income, the state advises you to pay voluntary pension insurance

Experts warn that a large number of citizens in Bosnia and Herzegovina work illegally, some are even owners of private businesses, but the majority of them do not want to pay pension insurance for themselves, which the law allows, and which could eventually backfire on them, writes the Bosnian news agency Patria.

The Federal Law on Pension Insurance allows those who do not have permanent employment in a company and for whom health and pension insurance are not paid, to pay pension insurance for themselves and thus acquire the right to a pension when they reach the required age.

For voluntary pension insurance in the Federation, it is necessary to pay a minimum of 216 KM per month, and when you reach the required age or the sufficient number of years of service, the state guarantees you a pension for the rest of your life.

Experts warn that farmers, who often earn solid incomes in rural areas but have no one paying pension insurance for them, should particularly take advantage of this.

- Some citizens do not know about this possibility, and some do not want to know. However, the law allows you to pay pension insurance for yourself. So, if someone is registered as unemployed but still has some regular income that exceeds their monthly needs, they can pay pension insurance for themselves – explained officials from the Federal Pension Insurance Fund to the news agency Patria.

- In that case, the state covers your health insurance, and you secure your pension – they further explain from the Pension and Disability Insurance (PIO).

Only a small number of citizens in the Federation use these benefits. For example, in 2010, only about 1,500 people paid voluntary pension insurance. PIO officials say that this practice is not good and that citizens should think about their pensions while they are still young, writes NAP.