Greek pensioners are privileged to receive 98 percent of their average income, a new study by the Organization for Economic Co-operation and Development shows.
Only 7 percent of Greeks over the age of 65 live below poverty level, when the average in the 34 OECD member nations is 13 percent. Those considered poor are those having an income below 50 percent of their average household income.
The study is called “Pensions at a Glance 2015”.
Luxembourg seems to have the richest pensioners in the world, as a person over 65 receives a pension that is 106 percent of the average income. France ranks second at 100 percent and Greece is third at 98 percent. The average among the 34 OECD nations is 87 percent.
Greece also ranks high in supplementary pensions, as 66.8 percent of pensioners get supplementary funds, while the percentage of supplementary pension recipients ranges between 35.5 and 103.2 percent in OECD countries.
The study shows that Greece spends a lot on state pensions, as 14.5 percent of gross domestic product goes to pensions. The OECD average is 7.9 percent. Also, Greeks over 65 are 20.2 percent of the population, with the average being 16.2 percent.
However, the average income of a Greek worker is significantly lower than the average among OECD states. An average income in Greece is 20,168 euros, way below the OECD average which is 33,036 euros.
“Most governments have made important efforts to bring public pension systems on a sustainable path; while these are steps in the right direction, there is now a growing risk in some countries that future pensions will not be sufficient,” said OECD Secretary-General Angel Gurría. “The long-term challenge is to design policies today that are flexible enough to adapt to the uncertainties of tomorrow’s world of work, while ensuring adequate living standards for retirees.”
Retirement ages have risen substantially, with retirement at 67 becoming the new 65 in many countries. Several countries are planning to move towards the retirement age being at 70, including the Czech Republic, Denmark, Ireland, Italy and the United Kingdom.