In Greece, the number of pensioners who work and declare their employment in e-EFKA, the country’s social insurance agency, reached 182,000 in July, up from 36,000 a year ago.
Working pensioners
While working pensioners make up a small percentage of all pensioners (2,486,565), their numbers are steadily increasing. This surge follows a new provision that replaced a 30 percent pension cut for working retirees with a 10 percent contribution to e-EFKA.
Considering that 27 percent of pensioners (about 680,000) are over 81 years old and may find it difficult to work, the percentage of working pensioners under 80 may be as high as 10 percent. Yet if we account for the nearly 1.9 million people receiving old-age pensions in total, the percentage of working retirees could be even higher.
These figures are estimates and may not accurately reflect how many individuals are forced to work as they approach advanced age. However, statistics highlight an existing trend. Namely, as pensions often fail to cover basic needs and retirement age increases, many individuals in advanced age continue to work. The World Economic Forum labels this trend as “unretirement” in association with an ageing population, especially in developed countries.
Working after retirement is part of the European Union’s “active ageing” policy. This agenda gained prominence in 2012 during the financial crisis that affected Greece and other PIIGS countries.
Poverty pensions
The EU’s active ageing policy was initially seen as a populist measure. EU Commissioner Lazlo Andor suggested it was a response to one-third of workers expressing a desire to work beyond age 65. The survey did not clarify if this desire stemmed from pleasure in working or from financial necessity.
Today, post-retirement work is increasingly a necessity for retirees struggling with pensions below basic salary levels. In Greece, 60 percent of pensioners receive less than 1,000 euros gross per month, with the average pension below 820 euros.
Data from the Ministry of Labor (IDIKA-Helios Information System) shows that 38.5 percent of pensioners (958,188) receive less than 660 euros in net pension. Of these, nearly 500,000 (496,392) get “starvation pensions” below 470 euros net.
According to e-EFKA, the new provision, which replaces pension cuts with a contribution to the fund, supports pensioners by allowing them to increase their income and future pension. It also aims to reduce uninsured and undeclared work among those in advanced age and boost public revenues.
However, for many working pensioners, high taxation significantly reduces any additional income, which is often already low.
Greece faces the highest youth unemployment rate in Europe (21.8 percent in 2023, nearly twice the EU average). It seems paradoxical to extend working life for older people while failing to create quality jobs for the younger generation. The focus on cheap labor, regardless of age, does not address the need for better employment opportunities for youth.
Global context: a look at 2019
In Europe, the average retirement age is 64. Yet, the number of people working past 65 is rising. Eurostat data from 2019 shows 5.1 million people (out of a workforce of 100 million) over 65 partook in some sort of employment.
Eurostat data aligns with recent OECD and World Economic Forum figures. Nations in Europe have fewer workers over 65 than other parts of the world. In the UK, for instance, 3.8 percent of workers over 65 work, while approximately 1.3 percent work in Spain.
Japan and Korea have the highest rates of working retirees, with 13.6 percent and 13 percent, respectively. The USA follows with 6.6 percent.
