Stournaras Raises Alarm: Public Pensions Won’t Be Enough

The need to strengthen occupational pension funds as a complement to the public pension system was underscored by Bank of Greece Governor Yannis Stournaras, speaking at the 7th Conference on Occupational Insurance.

He stressed that state pensions will find it increasingly difficult to provide adequate income replacement rates for future retirees, a reality that is pushing the European Union to bolster occupational pension schemes while encouraging long-term saving.

Despite positive results in the sector, with fund assets reaching 621 million euros and technical reserves hitting 550 million euros in 2025, both figures representing year-on-year growth of over 20%, Stournaras noted that the institution is still in an early stage of development.

Only 27 Occupational Insurance Funds are currently in operation, with approximately 55,000 members, while the country’s broader insurance and investment culture remains underdeveloped. The relatively small size of many funds also prevents them from achieving economies of scale and adds to their operating costs.

To help the sector grow, the Bank of Greece governor called on all stakeholders to work in a coordinated fashion to build trust among both employers and employees. He expressed confidence that occupational pension funds will carry significantly greater weight in the years ahead, both as a retirement institution and as an investment force, at the national as well as European level.

Source: tovima.com