Tuesday April 21, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Pension system nears breaking point

 GSEE says social security will start to fail next year as recession and joblessness speed up deterioration

By Roula Salourou

The ticking time bomb of the social security system will not explode in 2025, but 10 years earlier, or next year, according to a study by the Institute of Labor of the General Confederation of Greek Labor (INE/GSEE) which is to be presented in Thessaloniki on Thursday.

GSEE’s annual report on the Greek economy includes a chapter on the aging population and the sustainability of the social security system from 2013 to 2050. Its conclusions, which Kathimerini has seen, say that the prolonged recession and high unemployment have brought forward the pension system’s crumbling point by a decade and that in order to become viable the system requires additional resources of 950 million euros for 2016 alone.

The system’s extra requirements are expected to grow rapidly in the following years, soaring to 2.67 billion euros for 2020.

The authors of the study note that pension cuts and a hike in the retirement age would have allowed for the sustainability of the system until 2025 had it not been for the deep and protracted recession and high unemployment. As a result 2015 is seen as the year when the social security system could fall apart.

They add that new measures will be necessary due to reduced state funding (from 16.4 billion euros in 2012 to just 8.6 billion per year from 2015 to 2018), an explosive rise in the jobless rate, an increase in the number of new pensioners (from 40,000 in 2009 to 100,000 per year after 2010), salary reductions and the growth in undeclared and flexible labor.

Already the social security funds’ cash reserves have dwindled from 26 billion euros in 2009 to just 4.5 billion last year, while the demographic shift in Greece resulting from longer life expectancy and a reduction in the birthrate has contributed to a 15 percent increase in the pension burden on funds, the study notes.

The INE/GSEE economists also note that after the recent interventions to the pensions system, the average age of retirement has grown to 63 years (not including early retirement options), while pensions have been cut by about 32.5 percent.

ekathimerini.com , Tuesday September 2, 2014 (22:47)  
Euro-area debt levels surge to record, led by Greece
ECB studying curbs on Greek bank support
Greek markets slide on reports ECB planning to restrict bank funding
Pension and lump sum cuts to be frozen
Greek PM to meet German chancellor on sidelines of immigration meeting
Greek Prime Minister Alexis Tsipras will be meeting with German Chancellor Angela Merkel on Thursday on the sidelines of an emergency summit of European leaders on illegal migration, sources...
US pushing for Greek solution in ‘interest of entire world’
The US is pushing Greece and its creditors to reach a deal that returns the country to growth, President Barack Obama’s chief economist said. It’s in the interests of Greece, its creditors a...
Inside News
BASKETBALL
Panathinaikos recovers to beat CSKA for 2-1
Three-pointer master Panathinaikos had the last laugh at the end of Game 3 of its series with CSKA Moscow on Monday winning 86-85 and reducing the Russians' lead to 2-1 in the best-of-five p...
GYMNASTICS
Petrounias wins gold in Europeans
Lefteris Petrounias won his first gold medal in a European Artistic Gymnastics Championship on Saturday finishing first in the rings at Montpellier in France. Petrounias was impeccable in th...
Inside Sports
COMMENTARY
Tragedy in the Mediterranean
Every time we in the West see yet another video of an atrocity committed by Islamic State or Boko Haram and express our abhorrence, and every time we are shocked to read of a boatload of mig...
EDITORIAL
Silence is not an option
There is no shortage of politicians, lobbyists and unionists from the center right who have backed the government, whether tacitly or explicitly. Naturally, when it was first elected, the go...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek PM to meet German chancellor on sidelines of immigration meeting
2. Euro-area debt levels surge to record, led by Greece
3. US pushing for Greek solution in ‘interest of entire world’
4. ECB studying curbs on Greek bank support
5. Greek markets slide on reports ECB planning to restrict bank funding
6. Greek government´s popularity takes a hit as talks drag on
more news
Today
This Week
1. Tragedy in the Mediterranean
2. Two men accused of migrant smuggling face prosecutor over deadly shipwreck
3. Silence is not an option
4. Greek government's popularity takes a hit as talks drag on
5. No ferries on Labor Day as seamen take industrial action
6. ECB studying curbs on Greek bank support
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Greek finance ministry hits back at German newspaper report
3. Time to get serious
4. Putting off payments led to Q1 budget primary surplus
5. Obama calls for flexibility in Greek reform talks in brief exchange with Varoufakis
6. Greece denies report that it is preparing for debt default
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.