Greek Pension Explained: How Does It Work?

Retirement is a significant chapter of our lives, representing a time of relaxation, reflection and a change of scenery. With its breathtaking landscapes, rich history and warm Mediterranean climate, Greece is an increasingly popular destination for retirees seeking a slice of paradise. However, before you pack your bags and imagine yourself sipping coffee by the Aegean Sea, it’s essential to understand the ins and outs of the Greek Pension System. A crucial role in the financial planning of retirees that can significantly impact one’s decision to make Greece as their retirement heaven, is gaining insight on how pension in Greece works.

Understanding Pension in Greece

Pension in Greece operates on a contributory basis, where individuals contribute a percentage of their income throughout their working years to build a pension fund. This fund becomes the financial backbone during retirement, providing a steady income to support retirees. The system is designed to ensure financial security for the elderly, offering peace-of-mind as they enter their next phase of life.

Old-Age Pension: A Closer Look

What are the Types of pension in Greece:

1. Old-age Pension: This is the standard pension paid to individuals who have reached the statutory retirement age.
2. Disability Pension: This pension, designed for those unable to work due to a disability, provides financial assistance to individuals who face health issues.
3. Survivor’s Pension: Provided to the surviving spouse or children in the event of the contributor’s death, this pension eases the financial burden during difficult times.

What is the pension age in Greece?

One of the critical factors in the Greek pension equation is the retirement age. Knowing when to start receiving your pension benefits is essential for effective retirement planning. In Greece, the pension age is influenced by various factors, including the type of pension and the number of years contributed to the system.

1.Full pension: At 62, you can receive a full pension if you have accumulated 40 insurance years (12,000 contribution days) or 15 insurance years (4,500 contribution days) at 67.

There are special rules for women, mothers, and widower fathers of children under 18 years old. A less strict set of rules applies to mothers of children under 18 and those working in hazardous jobs. According to certain rules, dependents of a person receiving the benefit are also eligible for an extra amount each month.

2.Reduced pension eligibility: Those who have accrued a minimum of 4,500 insurance days and reach the age of 62 are eligible for a reduced pension.

A reduced early pension at 62 is available to mothers of underage or disabled children who were first insured after 1/1/1993 and have completed 20 insurance years (6,000 days of employment).

Those insured before 1 January 1993 can get a reduced early pension under the following conditions:

1. At 62, if you have covered 15 insurance years (4,500 insurance days), 100 of which must be in the 5-year period before the pension.
2. The age of 62 if you are male and have 10,000 insurance days, or female and have 12,000, 100 of which must have been accumulated yearly in the five years before the pension.
3. By age 62, if you had worked 35 insurance years (10,500 insurance days), 7,500 of which were tedious and unhealthy.
4. If you are a disabled child’s mother or bereaved father and have covered 18 insurance years (5,500 insurance days) at 50.

To summarize, embarking on a retirement journey in Greece is proven to be a gratifying pursuit, presenting a mix of scenic splendor, cultural abundance and a laid-back way of life. It is crucial to grasp the intricacies of the Greece Pension system to ensure a smooth transition. Tackling the complexities of the Greek pension system and the corresponding legal procedures may seem overwhelming, but this is where the expertise of Peace of Mind Services Greece becomes valuable.

Also Read: Making The Right Choice For Legal Services In Greece

Peace of Mind Services Greece – Your Guide to a Seamless Retirement

Peace of Mind Services Greece specializes in legal assistance for pension and retirement matters. Our specialized team of pension & retirement consultants are here to help.
Contact us at poms@wsgodigital.com to schedule an appointment or complete the online contact form and one of our representatives in Greece will get in touch based on your availability.