The country’s social security system is mathematically being led to complete collapse, regardless of measures to solve its other problems, under the weight of the constantly worsening figures of the demographic problem.
An OECD report states that Greece will be forced to increase the retirement age by almost 1.5 years by 2035 and by a total of 2.8 years by 2050, due to the worsening of the demographic problem.
This deterioration consists on the one hand in the expected increase in life expectancy, and on the other hand in the reduction of the working age population (20-64 years old) which in Greece will reach 35%!!!
The report reiterates that the coming years will be difficult. By 2050, the number of pensioners corresponding to every 100 workers will double. That is, while in 1990 the ratio was 22.9 people over 65 per 100 workers, in 2020 the ratio was 37.8 and in 2050 it will reach 75.
An aged country
Indicative are the figures according to which – if the most acute national demographic problem is not resolved – in the year 2070, each person over the age of 65 will correspond to one – perhaps even less – person of working age, i.e. economically active.
Repeated reductions in pensions and increases in retirement limits become ineffective – over time – if solutions are not found to the exacerbated demographic problem. An important contribution to the collapse of the system is also the explosive rise of flexible forms of employment that cause an increased loss of income for the system.
Today’s official picture of the ratio of employed pensioners shows that for every pensioner there are 1.5 workers, while fifteen years ago this ratio was close to one pensioner to two workers.
The report of the Minister of Labor in Parliament is indicative as it determined this ratio at 1 to 1.7 at the time when the insurance system was structured with the assumption that for every 4 workers there will be one pensioner. In fact, it expressed the assessment that in 2030 Greece will have taken from Italy an “unwanted first place, that is, we will be the oldest country in Europe”.
Latest News
Europeche: Greek Apricot Production Recovers
Europeche forecasts the production will bounce back despite a slight decrease in varieties attributed to high winter temperatures
Bank of Greece (BoG): Business-Household Deposits Up 1,675bln in March 2024
In March 2024, the monthly net flow of credit to the general government was negative by 469 million euros
FT: Greece’s Economic Rebound a Balance of Growth and Poverty
Eurostat data revealed a significant 10.8% drop in Greek public debt relative to GDP in 2023, alongside a 2% economic expansion, outpacing Germany's performance.
Lavrio Port Authority Next Up for Privatization
A deadline for the submission of expressions of interest is May 14, 2024
Eurostat: Greece Records Largest Drop in Natural Gas Prices in 2nd Half of 2023
The price of electricity and natural gas in Europe was down following a substantial surge that began before the Russian invasion of Ukraine and peaked in 2022
GEK TERNA Still Considers Leveraging Concessions Portfolio as Financial Tool
President and CEO of Gek Terna George Peristeris explained the company's plans on Tuesday on the sidelines of the inauguration of sections of Greece's E65 highway
NielsenIQ: 3% Supermarket Revenue Increase in Q1
Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%
Store Hours Change Today in Observation of Orthodox Easter
The President of the Athens Chamber of Commerce hopes the Easter period will provide a much-needed boost to retail traffic in the capital
Athens-area Mass Transit Systems Set to Finally Install Contact-less Fare Payment
Paying fares via bank cards, smartphones and smartwatches in all mass transit systems in the Greek capital, namely, buses, trolleys, the metro and tram lines, is scheduled by the end of the year
Council of State Rejects Motion Against Thessaloniki Motorway Project
The motion was filed earlier this month by three local citizens’ and environmental groups and generated a high court decision for a temporary stay in construction