By Vangelis Dourakis

A “station” year is highlighted in 2027 – symphony and year of national elections – on retirement age: then the provision of Law 3863/2010 is expected to be activated, which was voted on Memorandums to link the age limits to the life expectancy of those 65 years. If and when it is found that life expectancy has been uploaded then the age limits will be increased by 2027.

This process was to be first implemented in 2021 but was postponed due to a pandemic. The following year “Station” for the adoption of the relevant provisions of the Memorandum Law is set for 2027. Indeed, in the summer of that year, national elections are also foreseen.

How much will the age limits rise

That year, it will be examined whether and how much the life expectancy for older people over 65 in Greece in the 2016-2025 decade.

If it is found that life expectancy has increased then the age limits will be automatically increased by 2027.

With this connection – with age -limits with age limits – almost all European countries operate and when life expectancy goes up, it becomes an appropriate adaptation to retirement ages.

This process in our country will be repeated every three years, so it will be examined by the end of 2029 whether and how much the life expectancy went up to decide the increase in age limits from 1/1/2030. The same will be done in 2033, and so on.

According to ELSTAT, the life expectancy of men over 65 years from 18.8 years in 2019 is increased to 20 years to 2030, while in women from 21.8 years, it is increased to 22.9 years.

The connection of life expectancy to age limits based on OECD practice can be applied by a ratio of 1 to 1, with a ratio of 1 to 2/3 and 1 to 1/3 ratio.

The model that seems likely to be for Greece as the OECD says is the ratio of 1 to 1, that is, for every 1 year that will increase the life expectancy will increase by 1 year and age limits.

With 1 to 2/3 the age limits will increase by 8 months for every 12 months of life expectancy and with 1/3 the increase in limits will be milder to 4 months for every 1 year when life expectancy is increased.

Who are at risk of retirement later

Depending on the conclusions that will come to life expectancy and relevant decisions, changes in age limits will concern:

1. Insurers with ages 50 to 55 years today, which are 12 to 7 years away to complete 62 and gain the right either for a reduced pension or full if they have 40 years of insurance.

This category of insured persons is in danger of being trapped in one or two increases in age limits which means that for some- and probably 50s, or even 55-year-olds- 62 years of pension will be past after 2027.

Based on the data so far and the adjustments made to the age limits after 19/8/2015 (Law 4336/2015), insured persons who do not entitle retirement within 2027-2030 will be charged with all the increase. So those who close in 62 in the year after 2030 are most likely that if the age limits are increased as studies show, they will retire to 63.6 months.

Those who close 62 within 2027-2030 will also be affected, depending on the mixture of the increase in age limits within three years.

If, for example, the increase is 1.5 years and it is decided to gradually increase with an increase of 6 months each year, for three years (2027, 2028 and 2029) then an insured person who will be 62 years old in 2029, is likely to be burdened with a 12 -month age on the age limit. An insured person who will become 62 in 2027 is likely to be burdened by 6 months and retire at 62 and 6 months.

2. Insurers with ages 35 to 45 years who are in the first 15-20 years of working life and will catch two or three increases in age until they retire.

3. Young insured persons who are going through the early years of their working life and now they will have to reconcile the idea that they will get a pension after 64 and 44 years of insurance.

Caution is needed for those who have retirement but will miss the years. In these cases, insured persons should recognize fictitious times in order to have a fully founded right to retire before 2027.

Who is not affected by the changes

From the possible changes in age limits, they will not be affected as the following categories show:

1. Insured who already have a founded retirement right to reduce or complete pension in all funds based on the age limits in force from 19/8/2015 to 31/12/2021 and from 1/1/2022 onwards.
2. Insured who retire by disabled member provisions (child, spouse, brother).
3. Special categories of insured persons such as those who belong to heavy and unhealthy occupations in both the private and public sectors.
Classes that will not have changes in age limits are likely to include the pensors for which the retirement requirements are determined by special law.