UPDATE: Montenegro’s pensioners can expect an increase in their monthly income this year, according to Vladimir Drobnjak, acting director of the Fund PIO. This announcement, reported by RTV Podgorica, comes as retirees eagerly await the official inflation rates that will determine the exact percentage of the increase, expected by late January.
Drobnjak confirmed that all pensioners, especially those receiving minimal pensions, will benefit from three regular annual adjustments. The first adjustment is scheduled for February 20, 2024, providing crucial financial relief for many.
Despite the lack of significant wage growth or inflation in recent months, Drobnjak cautioned that retirees should not expect a substantial increase. He stated, “Based on our experience, we can make assumptions, but I would avoid projections until we have the exact figures.” This uncertainty leaves many pensioners anxious about their financial futures.
However, Drobnjak reassured the public that pension payments are secure for this year and the next. He emphasized that the recent reduction in contributions to the Fund, through the Europe USA 2 program, has not negatively impacted the Fund’s operations.
The budget for 2026 has already been projected at 843 million EUR, reflecting a 5.2% increase compared to last year’s budget. This budget includes provisions for all regular pensions and the planned adjustments, signaling a commitment to support retirees amidst economic challenges.
Historically, pension increases have outpaced inflation rates. The real growth in pensions was documented as 2% in 2022, 7.6% in 2023, 3.15% in 2024, and projected to exceed 8% in 2025. Drobnjak asserted, “The living standards of citizens and pensioners in Montenegro have indeed improved over the last few years, despite the unpleasant nature of inflation.” This perspective adds a silver lining to the ongoing economic struggles faced by many.
Looking ahead, Drobnjak predicts that the Fund will avoid a deficit, alleviating fears of a potential crisis in pension operations. He highlighted that for the pension fund to be entirely independent, Montenegro would need to double its workforce.
The implications of these developments are profound for Montenegro’s retirees, who are watching closely as these adjustments could significantly impact their quality of life. As the February date approaches, many will be eagerly anticipating the official announcement and how it will affect their monthly budgets.
