Escape – Record In this year’s pension, EFKA records at the same time that one in three insured persons retires with an early and reduced pension and suffers a discount of up to 30%. It is estimated that 2024 will see a record number, with more than 230,000 retirements.
The reasons for the insured’s collective retirement are as follows:
- The new system suitable for work after retirement (Article 114 of Law 5078/2023) which allows pensioners to work without reducing their pension. This measure has been very successful and the declarations of working pensioners have already reached 175,000 on the relevant EFKA platform.
- The possibility of raising the retirement age as of 2027. It is emphasized that at the end of 2026 the government will be called upon to make a decision on whether and how to raise the general retirement age in our country from 1-1-2027, based on developments in the foreseeable future of life.
It is worth noting that the legislation in our country provides for a mechanism to increase the retirement age from 2021 onwards, which will adjust the retirement age according to average life expectancy every three years.
No adjustments were made in 2021 and 2024 since on the one hand the age limits have already increased with the expiration of the transitional provisions and from 1/1/2022 the general rules for obtaining a full pension at 62 to 40 years and an old-age pension to 67 years to at least 15 years of insurance apply, on the other hand the increase in life expectancy has changed due to the pandemic. Therefore, the next stop where it will be studied whether the age limits will increase and to what extent the life expectancy will increase is the years 2027 and 2030.
Retirement births
The so-called baby boom generation, born between 1946 and 1964, is retiring. This generation, characterized by an 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. In order to start giving birth, the Greeks had to first leave behind the wounds of the civil war and the poor decade of the 1950s. In those five years, 170,000 births were registered annually, while today births do not exceed 90,000 per year. year. According to a 2016 survey (Roumboulis, Petsis), the retirement of the baby boom generation will take place in the period 2022-2029 and in this period the annual retirement rate will be twice as high as in the period 2015-2022 (5% per year).
It is emphasized that thousands of insured persons still have a window to retire before the age of 62 for the year 2024 (despite all contractual limits being raised to the age of 62 and already with 40 years of insurance), taking advantage of the transitional age limits they have already obtained. It is emphasized that more and more insured persons are choosing to retire. This fact leads to an explosion of early retirements.
Three keys
The three keys to retiring before age 62 are as follows:
FirstlyThe basic condition for retirement before the age of 62 (with full or reduced pension) is a base of 25 years, the presence of a minor child in the period 2010-2015, as well as the return of fictitious years.
secondlyTo be an Old Believer (before 1993).
ThirdThe minimum conditions in terms of insurance years shall be set for the three-year period 2010-2012.
Retirement before 62
The two basic conditions
The insured You may meet these conditions:
a.Either by recognizing fictitious years, even in 2023, and “cutting” those years back so that the necessary conditions are met regarding the minimum insurance period. In this way, a more favorable system is ensured regarding the retirement age.
BIn cases of successive insurance, the employee may request that his application be examined based on the old provisions for public and private sector employees, even if the last insurance provider is OGA, OAEE, etc. (previous funds that did not anticipate favourable provisions for a reduced pension, or a minor’s pension, at the age of 35 or before the age of 60).
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