ECONOMY

Changes to pensions will be felt widely

changes-to-pensions-will-be-felt-widely

Tough new pension reforms form part of the new memorandum between Greece and its creditors, including the lowest pension band dipping under 200 euros for those retiring before 67, the retirement age being raised for around 150,000 workers, including those with disabilities, as well as changes to pension subsidies for several professions.   

The changes will come into immediate effect once passed by Greece’s Parliament. Those who retire before the age of 67 will have access to only what they themselves have contributed to their pension without the additional government subsidy.

For those retiring after the age of 67, the total minimum pension including the government subsidy will be 483 euros a month.

The new measures are expected to save the government 48.5 million euros over the next three years and 28.5 million euros annually from 2017 onward.

Workers currently eligible to retire at 50 will see an extra five years added to their retirement age, steadily increasing to 67 by 2022. Those eligible to retire at 62 with at least 40 years’ pension contributions will see a year added to their retirement age annually.

Additionally, cuts are planned for pension subsidies claimed by the police, port workers, firefighters, sailors, lawyers, engineers and notaries.