The two reasons for retirement in 2026

Retirement is advantageous in 2026 as the new pension calculation system will be implemented, which will give a greater increase, while the same year the government will be called upon to decide whether to change the retirement age limits from 1/1/2027 due to the demographic.

In particular, greater increases in pensions since January 1, 2026, is foreseen by the new method of calculation, which will include the ELSTAT year’s inflation of the year. It is noteworthy that if the provision was applied this year, from the 2.7% of pensions, this would be 4%.

In detail, as of January 1, 2026, the calculation of pensions in Greece is changing, as a new wage index is introduced that will increase the retirement earnings by which the reciprocal pension is calculated. In essence, this new system of adjustment of retirement earnings is considered favorable to insured persons, as wages usually increase at a faster rate than inflation. For example, if the « wage index » shows an increase of 4.5% in 2025, the retirement pension will be higher than if only the price adjustment was applied.

At the same time changes have come to the retirement age limits since 2027 due to demographic. Within 2026, the ages of the retirement will be re -evaluated and if the algorithm linking life expectancy after 65 with age limits show that changes must be made, then 2027 retirement ages will change.

Insurers will be able to get a pension of 62 to 40 years or 67 to at least 15 years of insurance up to 2026. From 2027 it is not certain whether the same limits will be left or to increase by following the life expectancy if it goes up.

Changes in age limits will be automatic as with a relative provision voted on by 2010 under insurance law 3863, retirement age will increase as long as life expectancy is increased after 65 years. To date, no change has to be made on the one hand because the age limits went to 62 and 67 (from 60 to 65) and on the other because with the pandemic life expectancy has not increased so again no further adjustment of age limits.

The latest study by the National Actuarial Authority, however, shows that between 2027 and 2030 the age of 40 years since the 62nd year today will go to 63 years and 5 months, while 67th at 68.5.

Impact

It is noted that this is one of the dramatic impact on the insurance system that the demographic problem has and is the ratio of pensioners – insured, which is currently at 1 to 1.66. In 15 years it will fall to 1.25. This means that if today for every 100 pensioners there are 166 insureds to maintain them with their contributions, in 2040 every 100 pensioners will only be charged 125 insured to pay their pensions.

Studies of international organizations such as Eurostat, the European Commission and the OECD have been putting the government in red alert due to the demographic bomb. Studies are concluded that retirement age will increase as it will be linked to life expectancy by 2027 and increased every three years as long as life expectancy is up after 65 years. The life expectancy of 65 for men, goes from 18.7 years in 2022 to 23.9 years in 2070, while for women it goes from 21.7 years to 26.7 years respectively.