Greeks pessimistic over pension prospects

Greek citizens are pessimistic over the country’s pension system, reflecting uncertainties over their financial prospects, a public opinion poll published by the Association of Insurance Companies of Greece showed on Tuesday.

This uncertainty is highlighted by the fact that only one in four Greeks fully acknowledges the changes currently underway in the pension system, while the vast majority of polled citizens said they expected their pension to be affected by these changes, with one in 10 saying they did not expect to receive any pension at all.

The survey was held in the June 15-23, 2010 period in a sample of 1,000 people of all classes and ages. The survey showed that half of the employees and pensioners polled “were not fully certain over the pensions”, while more than eight in 10 their pensions could not sustain their current living standard. The majority of surveyed people said traditional ways, such as real estate incomes, investments and saving deposits -with 50 pct thinking about personal pension insurance programs- could offer additional financial help.

Labor & Social Insurance Deputy Minister Giorgos Koutroumanis expressed his optimism over the long-term viability of the country’s pension funds and stressed that citizens should be informed over the changes in the pension system and noted that the supplementary private insurance system should be developed by introducing single regulation, adequate supervision and setting clear terms over the cooperation between pension funds and insurance companies.

Al. Sarrigeorgiou, president of the Association’s life, pension and bancassurance commission, said development of the private insurance business was largely dependent on strong tax incentives.