Six out of 10 pensioners receive less than 1,000 euros gross
More than half of Greece’s pensioners, specifically 57.1%, receive monthly pensions that do not exceed 1,000 euros gross. Of these, nearly 38.2% have pensions below 700 euros, while 19.7% receive pensions of less than 500 euros. These figures reflect the difficult economic reality faced by the majority of pensioners and highlight the limitations of the current pension system in a country that has endured multiple economic crises.
In September 2024, the pension system paid out a total of 4,637,740 pensions, illustrating the substantial expenditure required to support pensioners. Of these, 2,845,291 were main pensions, 1,359,748 were supplementary, and 432,701 were dividends. The total pension expenditure amounted to 2.65 billion euros, including tax deductions, health contributions, and payments to the Social Insurance Fund (AKAGE).
Age Distribution and Inequalities
The largest group of pensioners falls between the ages of 71 and 80 (35.7%), while 35.5% are aged 51-70. Additionally, 25.8% of pensioners are over 81 years old, highlighting the increased need for support and healthcare in this age group. Only 1.4% of pensioners are under 25, mostly those receiving subsidized pensions due to the loss of parents or other special circumstances.
Pensioners aged 61-70 receive the highest average pension amounts, reflecting both the length of their professional careers and the higher incomes they likely earned during their careers.
Geographical Distribution of Pensions
Geographically, the majority of pensioners are concentrated in the more densely populated areas of the country. In Attica, 1,756,666 pensions are paid, accounting for approximately 38% of the total. Central Macedonia follows with 752,087 pensions, and Thessaly ranks third with 307,229 pensions.
An interesting statistic comes from the Epirus region, which has the highest ratio of pension payments to GDP, reaching 25.2%. This highlights the region’s dependence on pensions. In contrast, the Southern Aegean region has the lowest ratio at 12.3%, correlating with higher tourism activity and a larger regional GDP.
Inequalities Between Public and Private Sectors
A notable discrepancy exists in the pension amounts given to former employees of the private sector compared to those from the public sector. New pensions in the private sector average 741.69 euros, which is 392 euros lower than the average of 1,134.37 euros for public sector pensions.
This disparity reveals significant inequalities within the pension system, tied to insurance, contributions, and income levels during one’s professional career. It also emphasizes the need for policies that will reduce this gap, ensuring greater fairness and equality among pensioners.
These figures shed light on the complexities and challenges of the Greek pension system. With the majority of pensioners receiving low pensions, significant regional and social inequalities persisting, and the gap between the public and private sectors widening, targeted interventions are necessary to ensure the sustainability and fairness of the system.
