Pensions: A “tsunami” of exits is coming with over 230,000 applications – Where will the age limits reach – 2024-09-14 13:41:55

The government expects an explosion of pensions in the coming years as the scenarios for an increase in the retirement exit limits lead more insured persons to the… pension application.

The effects of the worsening demographic problem are putting back on the table the possibility of raising the general retirement age after 2027, pushing those who can afford to leave. At the same time, the exodus is enhanced by the possibility – now – given to pensioners to continue working, without losing part of their pension.

Up to 250,000 pension applications in 2024

According to EFKA data so far, pension applications in the first half approached 100,000while it is estimated that at the end of the year they may reach 230,000 to 250,000. The figures show that new pension applications totaled 99,434 in the first half of the current year, pointing to an increase seen through 2024.

The Atlas Report for the period January – June shows that compared to the corresponding period last year, when 94,851 were submitted, an increase of 4,583 applications is recorded this year (4.6%).

An important role in the upward trend is the demographic problem that creates a permanent doubt about the possible increase in the retirement age limits. Despite the fact that the government has made it clear that the next audit for the insurance system will take place, as planned, in 2027, nevertheless the mood of a possible increase in the general age limits remains.

Reports that have been made public about the effects of the demographic problem bring back to the table and in the public debate measures such as the increase of the general retirement limit, the extension of working-insurance life and the reduction of replacement rates. The government “commits” – as far as they are concerned – only for the period until 2027. The statements of competent government actors leave open the possibility that there will be changes after this particular year.

The actuarial study – The scenarios for age limits

The nightmarish measures for Insurance came back to the news with the actuarial study of the National Actuarial Authority, which was used in the corresponding report of the European Commission.

The report basically put on the carpet the ominous demographic developments and their effects. The increase in life expectancy combined with the limited births and the aging of the population have as a direct result the increase in the retirement limit. The report mentions the possibility for our country the statutory retirement age to be increased to 67.5 years from the current 62 years – with 40 years of insurance.

In the interim and until 2030, it is proposed to increase the current age limit of 62 years with 40 years of insurance to 63.5 years. At the same time the general age limit, which is currently 67 years, may reach 68.5 years in 2030 and 72.5 years in 2070.

Two more reasons

As is natural, these scenarios create flight tendencies among the insured who have the option of leaving. In addition, two additional reasons contribute to the increase in applications:

• First: The possibility of retirement and simultaneous work for those who have established conditions for early retirement, such as parents with children, recognition of previous service, or heavy and unhealthy occupations, who can remain in the State or DEKOs, but entering the first entry level. In this case, a pensioner will receive the full amount of pension due to his years of service. At the same time he will be able to work in the private sector receiving a salary in stamps, which at some point will increase the pension income.
• Second: The increases given to pensions in the last two years, which exceed 17%.