According to a study of GSEE’s Labor Institute, it has been made crystal clear that the Greek State must find alternative financial resources in order to be able to carry on the subsidy of the pension scheme within the frame of social insurance. Otherwise, by the end of 2015 it is predicted that the Greek State will not be able to afford to pay the cost of pension funds reserves, causing them to collapse.
GSSE’S Labor Institute suggests that the alternative resources in order for the social insurance system to be viable could be the increase in the fair market value of public property, the lottery, the prosperity of the banks and the state-owned enterprises etc.
According to the study, a factor that speeds up the collapse of the pension fund reserves is the increase in life expectancy. This fact along with the reduced number of births leads to an increase in the pension cost.
Another factor that makes the situation worse concerning the viability of the pension fund reserves, is the high rate of unemployment according to GSEE’s Labor Institute data. In fact, unemployment has increased by 200 percent compared to the 2009 unemployment rate and the unemployment problem is not expected to be solved in the near future.
Last but not least, another factor that aggravates the system of social insurance and puts its viability in danger, is that Greece is entering its fifth year of economic recession.