The ministry proposes raising retirement age by one or two years to 67 for both men and women after at least 15 years of service.

According to the head of the task force drawing up the white paper, Andraž Rangus, the right to early retirement would be scrapped.

Pensions would be calculated based on the best-earning 34 years of service, up from the current 24.

Gradually, a point system would be introduced measuring the ratio between individual income and the average income in the country, based on which individual periods of contribution would score points.

Ragnus believes this would make the system more transparent and fairer.

While no early retirement is envisaged, bonuses would be received after 40 years of service.

The right to the annual allowance for pensioners, an equivalent of holiday allowance for employees seen as an instrument helping out pensioners who receive the lowest pensions, would be excluded from the pension insurance system.

A part of the funds intended for the allowance would be allocated to the pensioners with the lowest pensions and for palliative care.

In the transitional period of the first ten years, the white paper proposes indexing pensions 60% to pay growth and 40% to growth in the cost of living. In the next ten years, the shares would be 30% to 70%, respectively, and after the transitional period pensions would be adjusted only to the costs of living.

According to Rangus, the pension from the first pillar (obligatory pension and disability insurance) would be higher than now and would amount to between 60% and 70% of the person's last monthly pay.

The Labour Ministry official, however, highlighted that the pension system would be sustainable only if more is done to encourage employment of the young and older citizens.

The white paper affects the generations that are now studying or have just started their career, Ragnus said at today's press conference.