BoG Gov on Pension System Reform

Bank of Greece (BoG) Gov. Yannis Stournaras on Monday referred to the “urgent need” for the three pillars of post-employment income – the state’s social security system, private pensions and individuals’ savings and investments – to offer future beneficiaries the widest possible range of pension benefits.

Speaking at a book presentation in Athens, the influential Greek central banker pointed out that Greece’s pension system differs, in terms of structure, with other more advanced western countries. He also reminded that Greece has low levels of private insurance and even lower levels of participation in sector pension funds.

“Beyond the demographic aging of the population, there’s also an issue of the improvement of the standard of living of each succeeding generation, which increases demands for ever-higher post-processing benefits. It’s clear that a gradual reform of the pension system requires a strengthening of these pillars of capitalization, so that both employers and employees themselves can entrust part of their retirement income to them.”