Demographics: Population drops to 7.7 million – Work and post-retirement

The “bell” of danger for the dramatic developments engendered by the demographic collapse of Greece is sounded by official report of the European Commission on the fiscal implications of population aging in the EU member states. (Aging Report 2024).

Shortly before the leadership of the responsible Ministry of Social Cohesion and Family delivered it to the Prime Minister National Demographic Action Planthe European Commission has published its study which testifies how imperative is the need to take initiatives related to demographic aging and the reduction of the country’s population.

Of decisive importance is the impact of demographic factors on the financial viability of the public pension system, as well as on the labor market.

Greece is getting old

According to Eurostat forecasts, The population in Greece will decrease from 10,438 million in 2022 to 7,777 million in 2070. In addition, the elderly dependency ratio of the economically active population increases from 39.0 in 2022, to 74.4 in 2050 and then decreases to 66.0 in 2070.

The life expectancy at birthfor men, increases from 78.8 in 2022 to 86.5 in 2070 and for women, also increases from 84.2 in 2022 to 90.4 in 2070.

The evolution of life expectancy after 65 “climbs” to 23.9 for men (from 18.7) and to 26.7 for women (from 21.7), while for women it rises from 21.7 to 26.7. The evolution of life expectancy at 65 is an important factor in projection, as retirement ages are automatically linked to this factor.

Work after retirement for one in four Greeks

The employment rate of workers aged 65-74 it is estimated to increase from 8.6% in 2022 to 23.3% in 2070, according to the Report.

An increase in labor force participation is expected:

• for workers aged 55-64 (from 57.4% in 2022, to 78.2% in 2070)
• for workers aged 65-74 (from 9.3% in 2022, to 24.3% in 2070).

Also, while in 2022 the elderly dependency ratio is 39 (for every 100 workers there are 39 elderly over 65), in 2050 the dependency ratio will be 74.4 and will drop to 60 in 2070.