VOTERS IN SLOVENIA are heading to the polls today to decide on whether or not to approve a rise in the age of retirement, a move that many believe is vital for long-term economic stability.

However, opinion polls suggest that voters will reject the change with Reuters reporting that if this happens analysts predict that Slovenia’s credit rating could be cut and there could even be early elections.

The law, passed by parliament in December, would see the legal age of retirement rise to 65 from the current minimum ages of 57 for women and 58 for men.

The staging of the referendum followed demands by trade unions who argued the increase was too steep.

The European Union has urged the increase with Bloomberg reporting that the eurozone country with a population of 2 million people is viewed within the EU as needing to raise its retirement age as the population ages and the budget is put under pressure .

“Slovenia will have to implement the pension reform sooner or later,” EU President Herman Van Rompuy said recently.

Slovenia spends €1.3 billion per year to cover the shortfall in its current pension system.