The social security system in Greece is in a bad shape, as the assets of the pension funds don’t exceed 4.5 billion euros, except from the seamen’s (NAT) and the farmer’s pension funds (OGA). It is estimated that from 2016 the reserves of pension funds won’t be enough to cover pension needs.
The financial problems of Greek insurance funds are due to the reduction in statefinancing, the drop in the number of employed people and the increasing number of pensioners.
The situation is expected to become more difficult in the following years. It is estimated that the pension system will require additional resources of 900 million euros in 2016, 1.88 billion euros in 2017, 2.15 billion euros in 2018, 2.40 billion euros in 2019 and 2.67 billion euros in 2020, in order to cover its needs.
Figures presented by the Greek Social Security Funds (POPOKP) 30th Congress of Employees, showed that social security funds in the country have recorded losses of 33 billion euros during the past six years of the financial crisis. At the same time, the funds foresee that their budgets in 2014 will show a deficit that may exceed 2 billion euros.