Rising retirement rates are expected to continue through 2024, according to insurance experts, putting new pressure on spending and accelerating asset liquidation. Waiting for pensions.
The numbers show that the number of applications will exceed it again. 200,000, According to the Atlas system data for June 2024, the number of retirement applications during the first semester reached 99,434.
The number is expected to rise immediately after the summer, when final teacher retirement applications are added.
If the requests continue at the same pace in the coming months, their number will exceed 200,000, which is approaching. Record number For 2021, 212,151 applications were submitted, compared to 211,135 in 2022 and 190,368 in 2023.
In particular, applications in June amounted to 15,215, while pension payments amounted to EUR 11.9 million. In total, pension spending is expected to increase this year by EUR 550 million, reaching EUR 29.027 billion for basic pensions against the EUR 28.450 billion originally budgeted.
Experts estimate that the increasing influx of retirements will continue until 2027, as the baby boom generation is estimated to leave the labor market.
Main reasons for increased pension flows and expenditures EFKA It is the following:
1. Entitlement to retirement benefits for a generation baby boom generationThe generation in question, characterized by the explosion in the number of births, developed in Greece between 1960 and 1965, much later than in the rest of Western Europe and the United States, where the Greeks, in order to start giving birth, had to first leave behind the wounds of the civil war and the poverty of the fifties. In those five years, 170,000 births were registered annually, while today the number of births does not exceed 90,000 annually.
2. Increased flow of new pension issuance, which although a positive sign for EFKA’s performance, puts pressure on Expenses To pay more pensions. At the end of May, pensions due had fallen to 19,331 from 22,890 in January. In fact, according to EFKA, many of them are likely to be unacceptable. At a lower rate, the number of cases pending in the assistance bodies continues to decline.
3. A large percentage of insured persons apply for retirement. without interruption of workBenefiting from the new system that provides for the full payment of pensions to working pensioners. In fact, according to the latest data, the number of pensioners declaring their work has exceeded 200,000, a number that exceeded the expectations of the Ministry of Labor and EFKA. Contributions and the 10% resources paid by working pensioners increase revenues. However, at the same time, expenses also increase as pensions are paid without a 30% penalty
Spending on late pension applications will be significantly limited in the new year, with estimates already suggesting that outstanding pensioner debts, as well as potentially higher temporary pension payments, make retrospective pension costs zero.
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