Demographic threat to social security system

By Roula Salourou

The demographic threat is evolving into one of the social security system’s biggest, both in Greece and the European Union in general.

The latest EU report on the bloc’s aging population showed that the prospects are particularly concerning in Greece, as the current ratio of one over-65-year-old for every three people of working age will shift to 1:2 by 2040.

In 45 years’ time Greece will be dominated by the elderly, as for every five people of working age there will be three aged 65 or over.

The baby boom of the 1950s and 60s, combined with the increase in life expectancy, low birthrates and emigration have resulted in a significant rise in the number of people aged 65 and over while the number in the 15-64 age group is falling, not only in Greece but also across the bloc.

This development will have to be taken into account in the drafting of future social security policies, with the introduction of more measures extending the age of retirement and encouraging seniors to continue working.