Troika-Samaras Increase Retirement Age from 65 to 67 & Add 5 More years to Secure Minimum Pension

Posted by in Economy, Society

Thousands of Greeks -preferentially those working in the private sector – will be obliged to work for up to two years in order to go to retirement. At the same time, working years to secure the minimum pension will be increased from 15 to 20. This seems to be the deal between Greece and the international lenders (the Troika) in order to avoid lay-offs in the public sector and radical changes in labour rights.

At least this is been said by the Greek media.

Retirement age will be gradually increase to 66 as of 1.1.2013 and to 67 as on 1.1.2014.

Requirements for securing minimum pension will be increased from 15 years and 4,500 insurance stamps to 20 years.

The measures will affect those who entered the labour market before and after 1983 and after 1993.

At the same time, very likely are further cuts in pensions over 1,000 euro even if this amount comes from more than one pension. Further there is consideration for 22%-35% cuts in the retirement compensation even for those retired after 1995 with a special contribution to be deducted form the monthly pension.

With the increase of the retirement age the government targets saving of one billion euro.

However in order not to affect the so-called “labour reserve” aiming to trim down the public sector by sending some 40,000 civil servants to early retirement, an exemption is being considered for the civil servants (Ethnos via news247).

Currently civil servants go to retirement after 35 years of work independently of age.  That is a civil servant goes to full pension at the age of 55. Of course, there are several regulations for mothers of children below 18 years old who can go to early retirement with reduced pension after 25 working years at the age of 55.

In other insurance funds mothers of minor aged go to early retirement at the age of 55 or 60 depending on the insurance fund.

When insured at Greece’s biggest insurance fund (IKA) women working at the private sector go to retirement at 58 years and 6 months after 10,800 working days.

More details on the different working groups and requirements for retirement here (2012)  and here  -in Greek.