Swedish model for supplementary pensions – This will be the new insurance policy



The reasons for the gradual transition to the public capitalization system of supplementary pensions, which will concern the new insured and will have as a long-term result higher supplementary pensions than the current ones, were developed by the Deputy Minister of Labor and Social Affairs Panos Tsakloglou during an intervention The Undersecretary of Labor outlined the axes on which the next insurance reform will move in terms of the new supplementary pensions, which will be based on a public capitalization system. Investing in financial products has fluctuations , but in the long run it usually has much higher returns than the returns of distribution systems, Tsakloglou said, citing the case of Sweden as an example of the benefits of the proposed reforms. There, as he pointed out, “the main pension system is a distributive concept of capitalization and zero deficit, like our current supplement. But there is also a professional Fund that covers a very large percentage of insured, which is like what the Greek government is planning. At a depth of 25 years the real return of the distribution system was below 2% while of the capitalization over 5%. “With this system, future retirees can expect significantly higher pensions compared to the auxiliary ones of the existing system,” said Tsakloglou. The Deputy Minister of Labor and Social Affairs pointed out that the insurance deficits were decisive for the ten-year financial crisis and added that the interventions made in previous years led the insurance system to stability. However, as he pointed out, there are the following four challenges: The current insurance system (main pension, auxiliary and lump sum) is distributive and, therefore, particularly exposed to “demographic risk”. That is, due to the demographic aging of the population, fewer and fewer workers are required to pay with their contributions the pensions of an ever-increasing number of pensioners. In order to maintain pensions at a wage-proportion level, contributions must be increased, The current system does not contribute to the development of the economy. The insurance system does not inspire confidence in the younger generations. There is a perception among young people that they will not retire and this creates incentives for turning to the “gray economy”. Follow it on Google News and be the first to know all the news. See all the latest news from Greece and the world, at



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