Retirement in Greece. Minimum pension

According to the forecasts of the MinistriesAGreek economy, in 2017 there will be a GDP growth of 0.6%, which may indicate one thing - there is a clear trend towards the end of the Greek economic crisis.

There is a decrease in the unemployment rate, an increase in the number of jobs, a decrease in taxes and a fall in prices. The negative consequences of Greece's entry into the European Union, according to politicians, are behind us.

Pensioners - the cause of all the troubles?

The main problem of Greece, the IMF considers pensioners, the lion's share of GDP is allocated for their state support. The inexorable led to the fact that the Greek government began to pursue a policy of gradually increasing the retirement age: this approach should accelerate the process of the country's recovery from the crisis.

So, what is the pension in Greece and at what age do pensioners start receiving state support?

New bill

Reforming the pension system implies not only a significant reductionpension in Greece, but also the establishment of a unified social insurance fund and an increase in the level of contributions.

As part of the reform, the government plans to act in three areas:

changing the order of social insurance;

quantitative growth of funds specializing in insurance and pensions;

development of a profitable alternative for obligations to creditors.

The main purpose of the billconsisted inassociationsAndof all functioning social insurance funds into a single one. Systematization privelato the next:new ratem,recalculation of pensions for the years of service, and as a result - to a reduction in the amount of state support for future pensioners.Nevertheless, the income of current pensioners remained at the same level.

The government's pension reform plan was based on a new algorithm for calculating the basic pension and changing replacement rates.

Greek pension system

The reform not only affectedwhat is the pension in greecewill be in 2017, but also led to changes in the pension system. Thus, the following funds act as sources of social insurance of the population:

IKA is the largest national insurance fund.

Regional State Administration is a state fund engaged in insurance of both the local population and migrants.

Support

The task of the above funds is extremely simple - to accumulate funds for representatives of various professional fields and pay them after the citizen retires. In addition, the funds provide pensioners with free medical care, provide medicines and offer the possibility of a free flight to rest no more than once a year.The competence of the funds also includes material support for the disabled and low-income families who have lost their breadwinner.Depending on the accumulation of funds of which working category the funds are engaged in, different funds are deposited in them. Nevertheless, insurance conditions are identical everywhere, people prefer funds based on territorial characteristics.

The social insurance system for pensioners is based on mandatory payments from employees and employers. The algorithm for calculating pensions in Greece is provided for by law: the amount of the pension is formed depending on the total amount contributed. largely depends on their seniority, since the decisive factor in calculating the amount is the period of deduction of contributions to the fund.

Greek pension regime: main disadvantages

In the context of the economic crisis, the system of social insurance of the population of Greece failed. Experts identify the following main problems that forced the state authorities to implement new laws related to raising the retirement age:

decrease in indicators of natural population growth;

lack of labor resources;

mass migration of residents outside the country;

growth in the number of citizens who have reached retirement age;

reduction in the number of jobs;

lower wages;

reduction of contributions from employers and funds;

high level of corruption.

The pension age limit of 67 years, according to economists, will allow the state to save up to 1 billion euros a year, which will certainly have a positive impact on the stabilization of the system in the context of the economic crisis.

Greek pension: maximum and minimum

Eleven previous reformsByabbreviationsYusizeminimum pension in GreeceNotstopped the government this time too. The main motivation for the introduction of the new bill was a loan of 86 billion euros, the country will receive the third program assistance only after the first changes in the pension system.Esli in 2016 maxpension in Greecereached 2,700 euros per month, then in 2017 the "ceiling" is 2,300 euros.For citizens receiving several pensions, the maximum amount of state security was reduced by 600 euros, dropping to 3,000 euros per month.

15 years of insurance - this period is required to receive a state pension in Greece. The government justifies the deadlines with the aim of protecting long-term unemployed who are not able to fill insurance days. Thus, as a result of the reform, the minimum retirement age in Greece was set at 67 years. Provided that the length of service of a citizen is 15 years, the state is ready to pay monthly an amount of 384 euros. The alternative retirement age in Greece is 62. However, in this case, the total length of service must reach 40 years. What is the average pension in Greece? As a result of the reforms, it reached the level of 500 euros per month.

The ratio of salaries and pensions in Greece

The crisis period was reflected in the level of wages of the inhabitants of Hellas: if in 2012 the Greek salary ranged from 1.3 to 2.2 thousand euros per month, then in 2017 the average income barely reaches 700 euros. Thus,minimum pension in Greeceis about 60% of the income of the average citizen.

What to expect future retirees

The reform, which provides for pension funding from the state budget, and not from contributions, assumes an increase in the size of insurance premiums by 1.5%. Yes, employerspay one percentage point, and employees pay ½ percentage point: this approach is designed to keep current pensioners' pensions at the same level.

As political scientists and economists note, the amount of pensions in Greece will be significantly reduced in the near future. The Skai TV channel has calculated and published the following economic forecasts: the difference between the pensions for current and future pensioners can be from 15 to 35%. Under the new law, a citizen whose monthly income is one thousand euros will receive a pension of 764 euros. If the salary reaches two thousand euros, then the state support for retirement will be equal to 1151 euros.

Opposition opinion

Problem with billingpensions in Greece, as well as the timing of citizens' exit for a well-deserved rest, led to disagreements among the main political forces of the state. Thus, the leader of the Communist Party of Greece, Dimitris Koutsoumbas, expressed his concern: “Fears related to the future of the existing welfare structure are growing. The reforms are mainlywill affect young working people: tomorrow they will come with a request for a pension or medical, pharmaceutical assistance. Funds deal with all these issues.” Koutsoumbas called on the entire Greek people, including youth and workers, to come out to mass rallies and oppose the reform of the welfare system.

Government position

In response to criticism from the opposition parties, the official representative office of the government issued a statement as follows: "The government is making every effort to save the insurance system and keep the lives of pensioners at a decent level."

Changes in the retirement age, minimum and average pension in Greece— government steps aimed at improving the living conditions of elderly citizens through reforming the social security system. "We don't want to get caught up in another stalemate of future pension cuts," the spokesperson said in a statement. Greek Prime Minister Alexis Tsipras, justifying the reform actions, noted that the need for reform is due to the fact that if the previous insurance system were maintained, the Greek government would not be able to provide pensioners with material support in five years.

WITHIt should be noted that the government calls raising the retirement age the only effective step towards overcoming the negative consequences of the Greek crisis. According to Greek President Prokopis Pavlopoulos, Greece's national problem is "The achievement of social justice requires the mobilization of political forces," he said. The politician also urged the parliament to find a compromise.