Ageing Populace
* dos.six million pensioners out-of population around 11 million. 6 % in the 2008 in order to 29.seven per cent during the 2060.
* Financial dated-many years dependency proportion in order to rise off 43% within the 2008 so you can 86 per cent in 2060 (lifeless population aged 65 as well as over given that a share regarding operating inhabitants fifteen-64).
Expensive Pensions
* Versus Reform: Public retirement expense viewed increasing throughout a dozen percent of GDP this season to help you 24 per cent when you look at the 2050.
* Which have Reform:
– The European union in addition to IMF endeavor the rise in public retirement expenses could well be limited to lower than dos.5 commission items out-of 2010 so you’re able to 2060 should your reform is completely implemented.
– Brand new IMF states failing to pertain elements of this new change perform costs Greece dearly because of the 2050: we.age. dos payment points to own not preventing retirement prior to 60 and never growing retirement in line with life expectancy.
Retirement age
* Courtroom Retirement age: Advent of a great good legal retirement out-of 65 ages by — unchanged for men however, five years a whole lot more for ladies.
* Effective Retirement age: Greece has said they will improve the energetic mediocre old age decades to 63.five years from the 2015 regarding 61.4 today.
* Curb Early RETIREMENTS: The newest change tend to point on raising the minimal very early retirement so you’re able to 60 by the 2011, and gurus for the so-named heavy and you may thorough specialities, which mark full benefits even after retiring earlier. Your retirement advantages would be clipped because of the six per cent a year getting anyone retiring amongst the period of sixty and you will 65 which have shorter than simply forty years‘ contributions. Greece also needs to slice the variety of big and thorough specialities.
* Several years of Share: Progressive escalation in minimal share several months for advancing years with the a complete your retirement out of thirty five-37 in order to forty years by 2015.
Down Positives
* Get rid of retirement advantages by basing her or him to your pensioners‘ mediocre shell out over its working lifetime rather than the finest 5 out of the past 10 years from income.
* Slice the average annual accrual price to just one.2 percent regarding 2 %. Which results in a simple low-contributory retirement that Labor Minister told you endured in the 360 euros.
* Christmas time, Easter and you may summer bonuses is scrapped and you may replaced from the a brand new flat incentive of 800 euros annually for these receiving less than 2,500 euros a month.
* New IMF states this will reduce steadily the substitute for rates — the fresh new pension since the a portion at your workplace-lives earnings — out-of the common 75 % from wages so you can 60 percent. According to Labour Ministry quotes, an average legal replacement for rates tend to slip to over 65 % regarding better significantly more than 70-75 percent.
* The brand new OECD, and this exercises new substitute for rate centered on a complete-job for a person entering the work declare that Greece got the brand new group’s higher net replacement for rates, at 110.8 per cent.
It told you Greece got perhaps one of the most high priced retirement solutions also one of several highest poverty cost certainly one of pensioners. “They suggests there’s something improperly completely wrong for the Greek pension program,” told you Edward Whitehouse, pension specialist within OECD.