Life in Greece on a Russian pension

Everyone knows that Greece is still recovering from the financial crisis that shook it in 2009. The country is taking all possible measures to maintain the most comfortable standard of living for the population and a painless transition to a new economic era. But, of course, the burden of debt puts enormous pressure on the state, and the “subsidence” of economic policy in the social sector is especially noticeable. For example, one of the most significant payments – pension benefits – has been severely cut. And it is not known when to expect a reverse increase: after all, today pensions in Greece are strictly fixed, which is due to the requirements of the IMF. Is a dignified old age possible in modern Hellas? We will find out all the details in today's article.

Problems of the Greek pension system and the development of the crisis

In the first decade of the second millennium, elderly Greeks were almost the richest pensioners among European countries: they received benefits of more than 90% of their previous salaries. At the same time, the retirement age in pre-crisis Greece began at 57 years old and was distinguished by a system of additional benefits and holiday bonuses (thirteenth and fourteenth pensions). Thus, by 2009, the average size of Greek labor pensions was at the level of 1400-1500 euros. Today, due to a number of situations, the picture has changed significantly.

When the Greek crisis first broke out, no one thought of depriving the elderly of their privileges. But the government soon realized that high pension costs were depriving the state of the opportunity to get out of the debt hole, so it decided to reduce payments by 1% of GDP and return taxes for pensioners. And all this was carried out against the backdrop of job cuts, the outflow of the working-age population to other countries, a reduction in mandatory contributions from employers to the pension fund, etc. As a result, older Greeks began to receive a pension of about 50% of their previous income.

This measure was perceived very painfully by the country, but the demands of IMF creditors forced the Greek government to go even further. International economic experts, noting that Greece’s pension system is still too “generous,” forced the country to raise the retirement age and length of service, as well as freeze the indexation of pensions until 2021. So how do today's Greek pensioners live?

Greece: poverty wages and pensions

The 18 percent reduction will affect the so-called “personal difference” (προσωπικής διαφοράς), including additional (epicuriko) pensions. There will be an abolition of family benefits (for spouse and children), primary and additional pensions, as well as a freeze of all pensions until December 2021 and, finally, the abolition of EKAS for 280,000 low-paid pensioners.

• 8 out of 10 pensioners have reached the stage of impoverishment. They can't even pay for their medications. They don't have money to pay their electricity or phone bills.
• Approximately 1.5 million pensioners (earning €4,500 per year) are in poverty, and new cuts to current pensions in 2020 will result in a total loss of pensioner income of up to 70%.
• There is a "disappearance" of additional pensions as there have been 7 successive cuts from the original pension (before the memorandum was introduced) which ultimately amounted to (or exceeded) 78%. This is a typical case of a pensioner whose original supplementary pension was €585.2 and his current pension is €138.8 (a 78% reduction).
• Almost 1,200,000 pensioners live on a basic pension of up to 500 euros, and another 962,466 pensioners receive monthly from 500 to 1,000 euros. The average primary pension is 722 euros per month, the average supplementary pension (epicurico) is 170 euros per month, and the average pension for civil servants is 97 euros per month.
• Pensioners will lose up to 3 pensions in 2020 due to an 18% cut.

10 Jun 2020 lawurist7 254
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Procedure for receiving a Greek pension

Retirement rules do not differentiate Greece from other European countries. To enter a well-deserved retirement, a working person must work out the required length of service, while regularly deducting the average percentage of established contributions from his salary. If, of course, the employee wants a decent pension. For a minimum payment, you can make fewer contributions.

Today in Greece the retirement age is set at 65 years, and by 2021 it should rise to 67. If they wish, the Greeks can go on vacation earlier than expected, but then the total payment amount will be reduced by 10% for each unfinished year. But there are few “hunters” for such an opportunity. Indeed, in this case, the person will lose both wages and pensions will not please him with a decent level of income.

The minimum work experience required to receive a pension in Greece today is 33 years. But since it is becoming more and more difficult to pay pensioners every year, the requirements for length of service are gradually becoming more stringent. Soon the authorities plan to raise the bar to 40 years of minimum service life. As noted above, you can not complete the established length of service and receive pension payments, but in a very reduced form.

What is the current retirement age in countries around the world?

Also, Germany does not avoid this list. Although in most countries of the world there is a gender division in terms of citizens' retirement, Germany, like the above-mentioned Denmark, has more pragmatic views and allows all citizens of the country, regardless of gender, to retire no later than 67 years.

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Of course, this table does not show all countries, but only the most “contrasting”. From this table you can understand that the highest retirement age currently belongs to Japan, which also holds the record for life expectancy. However, it is too early to conclude that the higher the life expectancy in the country, the higher the pension threshold, since Canada, Spain, Sweden and other record holders for longevity do not have such a high threshold.

Pensions in Greece - average benefits

In pre-crisis times, Greek pensions thundered throughout Europe: payments amounted to more than 10% of the country's GDP, while the standard figure in the Eurozone was 2-3%. Now, the life of elderly people in Greece is unlikely to arouse the envy of its European neighbors. Greek elderly people receive a monthly pension payment that ranges from 360 to 850 euros.

Thus, the minimum pension in Greece in 2020 is about 360 euros per month. The accumulative part of the payment is added to this amount if the citizen has completed the established length of service and has accumulated a sufficient number of ensims.

Ensims are insurance points that are calculated based on the amount of cash receipts deducted from the employee’s salary and the employer’s income.

In order for the minimum pension to be accrued in Greece, you must earn at least 4,500 ensims, with 1 ensim equivalent to 15 euros. In other words, in order to accumulate 1 ensim monthly, the amount of insurance contributions of the employee and employer must be at least 15 euros. And you need at least 12 such ensims per month (i.e. 180 euros), taking into account the work experience of 33 years. And this is only for the basic pension rate!

The size of the pension in Greece is also determined by the funded part. It consists of bonuses and social payments. Thus, the right to financial support from the state is given to low-income and needy citizens, disabled people, those who have lost their breadwinner, etc. As for bonuses, they depend on the amount of insurance contributions. The more interest you deduct from your salary, the higher your savings and, accordingly, the rate of your future pension.

Also, what kind of pension there will be in Greece, or rather its amount, determines the country’s cost of living. In recent years, its importance has increased, so by 2021 the projected minimum pension for Greece is 375 euros. At first glance, an increase of 15 euros over 3 years is not God knows what kind of increase, but taking into account the strict order of the IMF to freeze all indexations until 2021, this little thing is a joy for the Greek elderly.

Thus, the total amount of pensions is the sum of several payments. For example, in 2020 the average pension in Greece was about 720 euros. This is if you do not take into account the difference in income. Again, someone receives the “minimum wage”, someone has earned 600 euros in their entire life for a pension, and someone has worked as a civil servant and receives over 800. The situation is like in the famous joke: one gets cabbage, another gets minced meat, and In general, it turns out that everyone has a cabbage roll.

Pensions in the world table 2020 rubles

But in general, funds can be accrued using the following methods: according to an individual savings plan; distribution system based on taxes (pension); distributive based on total tax revenues. 2020. Comparison of CIS pensions In this article we will figure out what the average pension is in Russia in 2020.

What do their Western colleagues do when making decisions about other segments of the population, in the east - Sweden. There and​ we wouldn’t​ ​have them”, introduction​ between parents and​ vice versa, in the eastern​ years.​ and children there​ with a low​ level multiplied by​ quantity​. The country is planning​No.CountryAge of entry into​ things: purchasing products,​ ​ the question arises: in​ years.

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What does the pension system look like in Greece today?

The benefit for Greek pensioners consists of a basic (minimum) and a funded part. Like many European countries, additional payments such as social assistance, disability benefits, etc. are also practiced in Greece. Thus, the final payment formula depends on a number of factors:

• Living wage rate;
• The amount of pension contributions of the employee and the employer;
• Work experience (insurance start date);
• Social status;
• Field of activity.

The last point is very important, because... In Greece, conditions for public sector employees differ significantly from the general conditions, and this also applies to length of service requirements and the procedure for calculating bonus payments.

Three large insurance funds are responsible for the calculation and payment of Greek pensions: one to provide for government employees, a second for Greek citizen workers, and a third that helps migrant workers receive pensions. In addition to government agencies, there are also a number of private professional pension funds. The task of these organizations is to accept contributions from the working population and form a guarantee of a decent old age for workers. Upon retirement, the fund is obliged to provide the client with:

1. Regular payment of accrued pension benefits.
2. Free health insurance.
3. Payment for travel or flights to a vacation spot.
4. Providing necessary medications.
5. Payment of additional social charges (if there is a legal right).

As you can see, on the one hand, the system is too cruel, because the requirements for receiving a pension are extremely high and the amount of payments is constantly being reduced. But on the other hand, older people have access to social benefits, free medical services and paid annual leave. Still, the state is making efforts and trying to provide elderly Greeks with comfortable living conditions in retirement.

On the problems of the pension regime in Greece

Effective social insurance systems in many European countries are now bursting at all seams.

Until about 2005, Greece was considered the country where the wealthiest retirees live. They received 96% of their previous salaries and essentially maintained their previous lifestyle in retirement without working.

The average salary in Greece was 2,000 euros, and the retirement age began at 57 years. Having gone on vacation, pensioners had the opportunity to live without denying themselves anything: traveling around the world, purchasing real estate in other countries.

In the context of the economic crisis and events taking place in Greece itself, it turned out that the lion's share of GDP is spent on paying pension benefits. Taking into account the fact that the population is aging, it has become obvious that the government, along with other measures to overcome the crisis, needs to raise the retirement age.

The main reasons that prompted the state to adopt a law changing the retirement age.

Reasons for the adoption of the law on changing the retirement age

• A sharp drop in natural population growth.
• Reduction in the number of working-age population.
• The outflow of the local population to other countries in search of high earnings.
• Increasing number of people of retirement age.
• High unemployment rate.
• Reducing wages.
• Reducing employer contributions to funds.
• Corruption is the plunder of insurance funds by officials.

Economists considered that, at a minimum, raising the retirement age to 65 years, and in the future to 67, would move the process of gradual collapse of the system as a whole off the ground. This will allow Greece to save 1 billion euros annually.

The issue of paying real pensioners has worsened in the country to the point that the government was forced to reduce the amount of pensions by more than half. Pension costs today average 500 euros.

Forecasts for pension provision for the population of Greece

At the moment, it is difficult to find positive aspects in the pension policy pursued by the Greek government. It is clear that all these are forced measures and the only way out of the protracted crisis. But the crisis has been dragging on for almost 10 years, and there is still no light in sight for social policy.

However, international financiers predict an increase in Greece's GDP for next year. If this really happens, then this event will be almost the first positive result since the beginning of the crisis. In this case, there will be hope for an improvement in the standard of living for Greek pensioners. In the meantime, the future of both the youth and elders of Hellas is rather vague.

Features of the country

Greece is located in Southeastern Europe, its neighbors are Albania, Bulgaria, and Turkey. It is considered one of the most hospitable countries in the world. Both elite and ordinary tourists can come here to relax. Many foreigners are eager to find out how life is in Greece. This is an ecologically clean area, and almost all of its resorts meet European environmental standards. There is a very beautiful sea and clean beaches, many ancient monuments that are definitely worth seeing.

The Greeks are very proud of their homeland and do not allow any foreigner to speak badly about it. They respect family and family values, and it is not uncommon for adult children to live with their parents under the same roof. The mentality of the locals is such that every man always respects his mother. Greece has the largest number of Orthodox believers, but there are also Muslims, Catholics, Protestants and Jews. Eleven million people feel quite comfortable here.

Climate

The variety of local climates makes Greece an attractive holiday destination at any time of the year. The following weather types are typical for this area:

• Mediterranean. Winters here are wet, with occasional snowfalls, and summers are hot and dry;
• Alpine;
• Central European. It is characterized by the presence of cold and wet winters, as well as summers filled with heat.

The Greek mainland has a climate similar to the Balkan Peninsula. It's cold in winter, hot and dry in summer. On the island of Crete, warm weather persists for a very long time. Greece has more than 300 sunny days a year, so sunbathing here is a pleasure.

Mentality of local residents

It's a little different from ours. The main common feature is the Orthodox faith. People in Greece are very friendly, any visitor to a store or cafe will be greeted kindly. Men also participate in raising children on an equal basis with women. Greeks are expressive people; they do not like to hide their feelings. During the conversation, they show exceptional emotionality.

They do not like to be responsible for something and do not welcome excessive initiative, so an active foreigner can look more advantageous against their background and has many chances to occupy a leadership position. It is accepted that a local man up to the age of 30 can undergo training and only then get a job and think about starting a family. Life for the Greeks has now become somewhat more complicated due to the fact that some laws have changed. Thus, the wives of local citizens were prohibited from opening bank accounts, and this process became more complicated for students.

USA

In the US, men retire at 67, women at 65 and receive an average of $1,100–$1,200 per month. One of the features of the American pension system is the opportunity to accumulate the necessary pension amount by working in one of the country’s companies for 10 years. Many citizens manage to collect savings for two or even three pensions during their working career.

If an American wishes to retire earlier than expected, for example, at 62 years old (early retirement age in the States), then he will have to submit a corresponding request indicating the reasons that prompted him to take such a step. At the same time, the early retiree must be prepared for the fact that the pension amount will be 70% of the amount that he would receive if he retired at 67 years old, and that it will not be possible to reach 100% in the future.

The amount of contributions to the state fund is about 15% of the salary, half of which is paid by the employee himself, and the other half by the enterprise. After reaching retirement age, about 30% of American citizens continue to work.

Great Britain

Experts believe that the UK pension system is close to perfection. As in most other countries, pensions in the kingdom can be public, private or based on length of service. Men retire at age 65, women at age 60–65.

On average, a citizen who retired before 6 April 2016 can expect to earn £119.3 per week. If retirement occurs after this date, benefits will average £155.65 per week.

To qualify for a basic pension, a citizen of the kingdom must work in the country for at least 10 years: each year worked increases the amount of the future pension by 4.44 pounds sterling per week. The minimum basic pension would therefore be £44.4 per week.

If a Briton has chosen to accumulate a pension amount in one of the private financial institutions, he can independently determine the amount of payments; no restrictions are set.

Some English people take this step, for example, to improve their living conditions.

More than significant pension supplements are provided in the UK for veterans of the Second World War: depending on the military rank or the severity of the injuries received, such a pensioner can receive in Russian currency from 150 to 650 thousand rubles per month.

Of course, with such passive income, a British pensioner may well devote the autumn of his life to travel, all kinds of hobbies, and the implementation of projects for which he did not have enough time in his youth.

Germany

The level of development of the state depends, among other things, on the attitude towards pensioners. As an example, consider the German pension system. A state with one of the most powerful economies in the world provides its citizens who have reached retirement age with all the conditions for a decent life.

The pension threshold established in the country is the same for men and women and is equal to 67 years. Despite this, citizens of the country can retire without waiting for this age: this is possible in the case when the pensioner pays from personal savings a certain amount necessary to compensate for the funds not received by the pension fund (about 0.3% of the existing savings for each unearned month).

It would be logical to assume that everything is in order with the size of the pension in Germany. On average, German pensioners receive $1,400 per month. It should be said that, despite the reunification of the two Germanys, which occurred after the fall of the Berlin Wall, the difference in the development of the east and west of the country still exists to this day. As a result, the average pension in East Germany is slightly lower and amounts to about $1,200 per month.

Working at one of the German enterprises, a citizen of the country contributes about 20% of his earnings to the Pension Fund during his work experience. In this case, half of the contribution amount is collected directly from the employee, the second half is paid by the employer.

Every German has the opportunity to resort to the services of one of the insurance companies in order to independently determine the amount of pension payments and accumulate a pension amount.

To count on an insurance pension, a German citizen must work at one of the country's enterprises for at least 5 years. If certain conditions are met, a pension in Germany can also be accrued to foreigners.

Features of the pension system

There are practically no significant differences between the Greek pension system and the pan-European one. A citizen who wants to receive social benefits. provision for retirement, will have to accumulate it.

The tax rate for employed citizens of the country is 6.68% of salary. Employers pay up to 13.4% taxes.

When reaching retirement age, a Greek resident's money is transferred into insurance points called ensims. To receive the “minimum wage” a person must score at least 4.5 thousand points. 1 ensim is equivalent to 15 euros.

Country insurance funds

There are 3 Federation Councils operating in the country. They have no significant differences; their activities are almost similar.

What do foundations do?

The main conditions provided by the funds include:

• payment of pensions, the amount of which corresponds to contributions;
• providing the population of the country with high-quality medicines, which they can receive free of charge;
• providing the population of the country with high-quality free medical care;
• providing citizens of the country with the opportunity to take a free flight once every 12 months.

Greek insurance funds pay not only labor pensions. Benefits are also paid to disabled citizens and families left without a breadwinner.

Main disadvantages of funds

The functioning of such funds is very similar to the work of state banks. Greek officials treat their work as a profitable business.

The choice of fund largely depends on where the pensioner lives.

They receive a lot of money, which they invest in their own projects. Against this background, ordinary Greeks face the risk of losing their savings.

Despite numerous scandals, the work of the funds will not be structured in the near future.

Opposition opinion

The problem with the calculation of pensions in Greece, as well as the timing of citizens’ retirement, has led to disagreements among the main political forces of the state. Thus, the leader of the Greek Communist Party, Dimitris Koutsoumbas, expressed concern: “Concerns regarding the future of the existing social security structure are growing.

The reforms will mainly affect young working people: tomorrow they will come asking for a pension or medical and pharmaceutical assistance. Funds are addressing all these issues.” Koutsoumbas called on the entire Greek people, including youth and workers, to hold mass rallies and oppose reform of the social security system.

Denmark

When considering the topic of pension provision for citizens in different countries of the world, it is impossible not to mention Denmark - the country with the highest pension in the world today. On average, a Danish pensioner receives 2,800 US dollars every month, and this is no joke. It can be difficult for a Russian pensioner to understand how this is possible.

The average life expectancy in Denmark today is 80 years, while Danes retire at 65–67 years of age.

The priority direction of government policy today is to create the most favorable living conditions for people of retirement age, which is why many people call Denmark a paradise for retirees. Often a pensioner in a country feels more secure than a working person.

In addition to a more than decent state pension, Danes often have savings in non-state pension funds, which can result in even higher income for a pensioner. Such a state strategy is aimed, among other things, at ensuring that pensioners remain independent and capable for as long as possible, since the maintenance of elderly people in nursing homes is carried out at the expense of public funds.

In order to provide additional support to the country's pensioners, a branch of the public organization DanAge has been created in each Danish municipality.

Japan

The average Japanese pension, which today is about 700 USD, allows pensioners of the Land of the Rising Sun not to experience financial difficulties and feel quite comfortable. This money is quite enough for food and to pay for utilities; there is also some left over for leisure activities, which, however, at this age can be quite moderate in terms of expenses.

A Japanese can retire at the age of 65, this applies to both men and women. However, if a citizen of the country expresses a desire to retire earlier, state laws allow him to do this: you can stop active work at the age of 60, but the pension amount will decrease by 25%.

If a Japanese person continues to work after reaching retirement age, each year worked adds a certain amount to pension payments, and by the age of 70, the pension may increase by a quarter.

According to statistics, the Japanese are the longest living nation in the world. The number of citizens who have passed the century mark exceeds 60 thousand people, the average life expectancy is 84 years.

Experts believe that proper nutrition helps the Japanese achieve such years: the diet of residents of the Land of the Rising Sun is dominated by rice, soy, and seafood. In addition, upon retirement, the Japanese continue to lead an extremely active lifestyle. Japanese pensioners can be seen in any part of the world as restless tourists.

The vast majority of Japanese elderly people do the so-called morning exercises “by radio”; older Japanese people try to prefer walking to traveling by car. In addition, the country has a healthcare system recognized by many experts as the best in the world. After 60 years, every Japanese regularly undergoes medical examinations, keeping their finger on the pulse, literally and figuratively.

Best countries to live in retirement - Greece

Spain, Portugal, Malta are the traditional three best countries to live after retirement according to many media outlets. Although Greece is rarely mentioned in such ratings, it has a number of unique advantages, which we will discuss in this material.

The Greeks are very friendly to guests: according to legend, any stranger was under the protection of Zeus

Comfortable life in Greece is partly due to its geographical location: it occupies the south of the Balkan Peninsula and islands in the Ionian, Mediterranean and Aegean seas. Of the nearly 10 thousand Greek islands, only 220 are inhabited: including Crete, the Cyclades, the Dodecanese and the Ionian Islands.

Luxembourg

In this small European country, pensioners are surrounded by care. Having registered their new status at the age of 60, they have the right to count on payments in the amount of 87% of their previous salaries. The average salary (excluding insurance fees and taxes) is 4.3 thousand euros!

Pension rates in Europe

Special pensions

In addition to old-age pensions, benefits are paid in Greece:

1. Unemployment: 360 € + 36 € for each family member.
2. For those who are registered at the labor exchange but have not found a job in Greece.
3. University graduates who were unable to find a job within three months.
4. Child care for mothers.
5. Disabled people and those temporarily unable to work.

The amount of payments depends on many indicators and is calculated individually for each case.

The table provides a detailed look at pension indicators in Greece for 2019.

How to move to Greece for permanent residence in 2020

“Greece has everything”—this is what Russians have been thinking about this sunny Mediterranean country for decades. And this is partly true. The wonderful climate, sea, rich history and fertile lands consistently attract immigrants from different parts of the world. Many Russians, who fell in love with it after a comfortable holiday on the sea coast, also dream of moving to Greece.

Pros and cons of immigration to Greece

However, not everything is so smooth in Greece today. It is gradually emerging from the crisis, its economic indicators are improving, and the standard of living of the population is rising. For those planning to move, it is important to know that not only the advantages, but also the disadvantages of emigration await them in their new place of residence.

Pros of moving

Immigration to the shores of Hellas attracts many advantages, including:

1. Healthy maritime climate.
2. Luxurious sandy beaches.
3. Cities with developed infrastructure.
4. Affordable price for real estate.
5. Free higher education.
6. Inexpensive catering.
7. Active nightlife.
8. Visa-free visit to the European Union.
9. Slow, calm, everyday rhythm.

Cons of moving

The advantages of emigration are obvious, but we should not forget about the disadvantages that those wishing to move to this hospitable state must put up with:

1. Significant unemployment, which now reaches 25%.
2. Frequent strikes, making movement around the territory difficult.
3. Bureaucracy.
4. A difficult crime situation due to the illegal migration of people from Africa and Asia.
5. High cost of living.

Ways to emigrate to Greece from Russia in 2020

The legislation provides for several options for legal emigration for permanent residence:

• Job;
• Education;
• Marriage and family connection;
• Doing Business;
• Investment;
• Buying a property;
• Residence permit for pensioners.

Marriage and family reunion

The emigration program on family grounds is relevant for foreigners who have relatives legally residing in Greece, which include:

• Spouses;
• Young children;
• Parents;
• Brothers and sisters.

To submit an application you will need the following set of papers:

1. International passport.
2. Two color photographs.
3. A medical report from a Greek clinic confirming the absence of dangerous diseases.
4. Certificate of good conduct.
5. Proof of relationship: marriage certificate, birth certificate of children or establishment of guardianship.
6. An invitation from the Greek side with financial guarantees.

Foreign spouses receive a residence permit for three years at once. For other categories of relatives, residency status is approved for a year with subsequent extension.

Relatives must pay a flat fee of 150 euros. There is no D visa application fee.

The decision period is one month. Obtaining a D visa takes up to 10 working days.

student visa

Students can move for a long time. They are issued a D visa on the basis of a letter from a Greek university. It must contain information about the foreigner’s enrollment in the course and the duration of his studies.

In this case, a residence permit is approved for the entire educational period, but does not give the student the right to work. The following documents are required for legalization:

1. Invitation from the university.
2. Confirmation of financial solvency.
3. International passport.
4. International medical policy.
5. Questionnaire.
6. Certificate or diploma of completed education.
7. Information about place of residence.
8. Conclusion of the medical board on the student’s health.

The cost of legalization includes the following amounts in euros:

• 90 – fee for visa D;
• 150 – state duty.

The processing period for a D visa takes from 1 to 8 weeks. A month is allotted for residency approval.