Sunday September 21, 2014 Search
Weather | Athens
27o C
19o 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)  
Record sum of new debts to the state in August
‘Greece can meet its needs on its own’
Cyprus civil servants´ strike called off
Elliniko investors eye Cyprus project warily
Results of probe into 20 Lagarde list names due soon
Members of the Financial Crimes Squad (SDOE) and tax inspectors involved in an investigation into the so-called Lagarde list of Greeks with Swiss bank accounts expect to be able to announce ...
Police refute reports of Jihadi training
Greece is not a training ground for Jihadis, the Greek police said in a statement released late on Friday in response to reports in the local media claiming that radical Islamists have been ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system – whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Results of probe into 20 Lagarde list names due soon
2. Police refute reports of Jihadi training
3. Gov’t drafts plan to secure exit from memorandum
4. Greek commuters have relatively long wait
5. IKA uncovers benefits scam at Kerameikos branch
6. Man dies in well accident
more news
Today
This Week
1. ‘Greece can meet its needs on its own’
2. Record sum of new debts to the state in August
3. Results of probe into 20 Lagarde list names due soon
4. Police refute reports of Jihadi training
5. Gov’t drafts plan to secure exit from memorandum
6. Special guard arrested over extortion, bribery
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. ‘Greece can meet its needs on its own’
5. Lost in the fog
6. Record sum of new debts to the state in August
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.