Deputy Minister for Social Security Notis Mitarakis estimated on Tuesday that the new auxiliary pension setup the government is preparing with pay-as-you-go features will lead to supplementary pensions that will be 35 percent higher than today.
Speaking at an event organized by Piraeus Asset Management on the reserves of social security funds, Mitarakis also argued that the new system is expected to see the investment of funds in the Greek economy top 100 billion euros. This comes as entities involved in social security seek ways of improving pensioners’ ever-shrinking incomes, boosting savings and supporting investments.
The support of the pensions system’s distributive framework with a strong pay-as-you-go pillar, along with the bolstering of savings and the strengthening of investments, is essential, according to the general director of the Foundation for Economic and Industrial Research (IOBE), Nikos Vettas.
He noted that domestic savings must grow for the structure of the economy to change, and went on to estimate that the reserves of the pension funds will support investments, although, as he said, he is not in favor of any extreme choices.