Greek workers approaching retirement face a choice between completing 40 years of insurance contributions for a full pension or accepting a reduced pension earlier, according to a report from newmoney.gr.
Avoiding a reduced pension is generally sound advice for insured people who expect higher pension amounts once they end their working life, the report said. It said 40 years of insurance is now considered the surest route for anyone who wants to benefit from the improved replacement rates set out in the pension law introduced by former labor minister Yannis Vroutsis, provided they have already worked more than 30 years.
When a reduced pension can pay off
Choosing a reduced pension can still prove highly advantageous and a rational move in several cases, depending on each insured person's personal, professional and financial circumstances, the report said. It identified the salary level and the pension payments an insured person would forgo over five years, while waiting to reach the retirement age of 67, as the key factors in making the final decision.
The report was framed as covering three-plus-one examples of the best solution for people who cannot or do not want to complete enough years for a full pension, and pointed readers to newmoney.gr for the full analysis.
