Greek Deputy Minister for Social Security Notis Mitarakis estimated on Tuesday that the new auxiliary pension set up the government is preparing with pay-as-you-go features will lead to supplementary pensions that will be 35 percent higher than today, ekathimerini.com reports.
Speaking at an event held by Piraeus Asset Management on the reserves of social security funds, Mitarakis also argued that the new system is expected to see the investment of funds in the Greek economy top 100 billion euros. This comes as entities involved in social security seek ways of improving pensioners’ ever-shrinking incomes, boosting savings and supporting investments.
The support of the pensions system’s distributive framework with a strong pay-as-you-go pillar, along with the bolstering of savings and the boosting of investments, is essential, according to the general director of the Foundation for Economic and Industrial Research (IOBE), Nikos Vettas.
He said that domestic savings must grow for the structure of the economy to change, and went on to estimate that the reserves of the pension funds will support investments, although, as he said, he is not in favor of any extreme choices.
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