OECD predicts increase in Greece's retirement age and birthrate

OECD Greek pensioners retirees retirement

The Organization for Economic Co-operation and Development (OECD) predicts an increase in the retirement age to 65 for Greece in its annual report on pensions (Pensions at a Glance 2021).

The OECD report states that the retirement age will increase by 2.8 years by 2050 in Greece due to increased life expectancy.

That is, from the current 62 years, after 40 years of work, the general age limit will jump to almost 65.

The increase will begin to be seen from 2035, as the age limit will increase by almost 1.5 years.

Similar decisions have been taken by other OECD countries to link retirement age to life expectancy.

According to the OECD report, someone who entered the labour market at the age of 22 is expected to increase his retirement age by 4.5 years in Denmark and Estonia from 2021 to 2050 and by 2.5 years in Italy.

The first memorandum law on pensions (Law 3863/2010) stipulates that from 1/1/2021 the first process of adjusting the age limits should start with a reference point of 65 years and based on the change in life expectancy in between 2010 and 2020.

From 1/1/2024 the age limits will be redefined every three years based on life expectancy.

The debate remains open but, as officials have pointed out from time to time, the process of raising the age limit does not need to be activated as 62 and 67 years are already considered high limits within the EU.

Finally, regarding the demographic developments and the pension system of Greece, the report reiterates that the coming years will be difficult. By 2050, the number of retirees corresponding to every 100 employees will double.

Thus, while in 1990 the ratio was 22.9 people over 65 per 100 employees, in 2020 the ratio was found at 37.8 and in 2050 it will reach 75.

However, the forecast for an increase in the birth rate, is optimistic, to 1.37 by 2040 from 1.3 births per woman in Greece in 2020, and 1.54 by 2060.

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