A record-breaking number of Greeks are approaching retirement, with a staggering 225,803 retirement applications submitted to the Single Social Security Entity (EFKA) in 2025. This surge in applications, surpassing even the previous peak in 2021, highlights a concerning trend: the mass exit of workers from the labor market and the rapid aging of the Greek population. The baby boomer generation, born between 1946-1964, is now reaching retirement age, contributing to this influx. While this generation's economic boom and social changes led to a significant birth increase, their retirement marks a pivotal moment in the country's demographic landscape.
Despite the high number of retirements, EFKA achieved a notable feat in 2025 by issuing 236,637 new pensions, surpassing the number of applications. This resulted in a reduced backlog of pending applications, preventing the creation of a new backlog. However, social security experts caution that the increased retirement flow is driven by three key factors: concerns about age limit changes, favorable regulations for retired employment, and fears of potential system interventions.
The experts emphasize that the mass exodus from work, coupled with demographic challenges, may not immediately pose a sustainability issue in the medium term. Nonetheless, it will present a significant challenge in the coming years. The critical question arises: Can the social security system sustain these retirement rates without straining the budget and revisiting the issues that have plagued insured individuals in the past?
