Wednesday, August 30, 2006

We've been over into the future...

...and it's getting grim for Europe's pensions:

The looming deficits in [Greece's] troubled pension system have spurred the government to push for reforms which some consider controversial because they could cut benefits and force people to work longer.

....Total spending on health and welfare this year will demand 18.82 billion euros from the national budget compared to 17 billion euros last year.

Workers are expected to hand over 9.6 billion euros to funds this year. more retirees draw pensions, fewer workers are contributing to social security funds, according to the government’s data.

This year, there are 3.93 million workers paying into a system that supports 2.21 million pensioners. This figure means that for each pensioner there are 1.77 contributors. In 2005, the respective figure was slightly higher at 1.79 while more than 15 years ago it stood at 2.4.

Experts believe that there needs to be four active workers for every pensioner in order for the system to be viable.

No comments: