[Glossary](https://pecuvo.eu/en/glossary/) · Pensions and insurance # The three pension pillars **In short:** The three pension pillars are the three layers of a pension system: the state pension (first pillar), funded compulsory or workplace pensions (second pillar) and voluntary pension savings (third pillar). **Simply put:** The first pillar is a shared pot — today's workers pay today's pensioners. The second is a personal "pocket" in your name, where part of your contributions builds up. The third is optional: you pay in extra to have more. Each pillar has its own rules on contributions, age, fees and inheritance. **Example:** Stefan checks his pension in two places: his years and earnings at the social security institute (first pillar), and the amount in his account in the annual statement from his pension company (second and third pillars). > **Example: Bulgaria** — Pillar I is state social insurance (NSSI); pillar II is supplementary compulsory pension insurance (universal and professional funds); pillar III is supplementary voluntary insurance. Pillars II and III are supervised by the Financial Supervision Commission (FSC, КФН). > > **Check in your country** — Which pillars exist where you live, and are you in a second pillar? Start with your social security institute and your financial supervisor. **Source:** OECD, "Pensions at a Glance 2025" — https://www.oecd.org/en/publications/pensions-at-a-glance-2025_e40274c1-en.html · FSC (Bulgaria) — https://www.fsc.bg ## In depth in the modules - [Module 25](https://pecuvo.eu/en/modules/pensions-three-pillars/) - [Module 15](https://pecuvo.eu/en/modules/life-strategies-by-stage/) - [Module 3](https://pecuvo.eu/en/modules/assets-and-cash-equivalents/) ## Related terms - [Pension](https://pecuvo.eu/en/glossary/pension/) - [First pillar (state pension)](https://pecuvo.eu/en/glossary/first-pillar/) - [Second pillar](https://pecuvo.eu/en/glossary/second-pillar/) - [Third pillar (voluntary pension)](https://pecuvo.eu/en/glossary/third-pillar/) - [National Social Security Institute (NSSI)](https://pecuvo.eu/en/glossary/nssi/) - [Financial Supervision Commission (FSC)](https://pecuvo.eu/en/glossary/fsc/)