Pension Funds and Fintech Industry - New Possibilities for the Insured Individuals

The universal pension funds in Bulgaria effectively entered their second stage of development — the distribution phase — in 2021. That year, the first insured individuals with accumulated funds in their individual accounts began receiving pension benefits or deferred payments from their chosen fund. However, 23 years after the introduction of universal pension funds in the country, most insured individuals still do not recognize their pension institution, let alone understand the different types of payment options currently available to them. The fintech industry may dramatically change this in the coming years, especially among younger generations who are far more adaptable to new technologies. This paper aims to assess the areas of the pension fund business where fintech applications could enhance efficiency and increase engagement among insured individuals — many of whom currently find the field unfamiliar or un appealing. The research is structured in two parts. The first examines the main risks and factors that influence pension fund accumulation and benefit amounts in a typical defined contribution scheme. The second presents selected findings from a broader study involving the use of artificial intelligence (AI) in VBA code structuring, focusing on a critical decision facing insured individuals today: whether to remain in their private pension fund until retirement.