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or 62 years with 40 years of work, while per-
sons aged from 55 to 61.6 years may also
retire with full pensions if they first entered the
workforce until 1992 and have completed 20,
25, 35, 36, and 37 years of work, depending on
their previous social security fund. The
National Pension is reduced by 2% for each
year short of the 20-year limit, and up to 15
years of work. Thus, the National Pension
received by a 67 year old worker, with 15 years
of work, will be reduced by 10%, i.e. it will
amount to 346 instead of 384 euros. The pen-
sion is also reduced when workers choose to
leave the workforce before reaching the retire-
ment age. More specifically, the pension is
reduced by 6% for each year below the full
pension retirement age. Thus, if a woman
chooses to retire at 62, instead of 67 years of
age, with 20 years of work, she will be entitled
to the full statutory amount, albeit reduced by
30%, since she will be retiring 5 years earlier.
The penalty amounts to 30% and the National
Pension is reduced to 269 euros. If, however,
she has 15, instead of 20, years of work, then
the 30% reduction will be imposed on the min-
imum level of the National Pension, i.e. 242
euros. The National Pension is also condition-
al on permanent residence in Greece for 40
years, from the age of 15 until the retirement
age. For each year of residence below the 40-
year limit, the amount of the National Pension
is reduced by 1/40. In other words, a worker
who has been a resident of Greece for the past
35 years will be entitled to 35/40 of the
National Pension. If this person has worked for
more than 20 years, they are entitled to the
384 euros of the National Pension, reduced by
5/40, i.e. 336 euros. The National Pension is
funded through the government budget and
national taxation.
3. Provided for a contributory pension.
The
contributory pension is added to the National
Pension and is calculated for each year for
which contributions have been paid, on the
basis of specific replacement rates, on a work-
er’s pensionable earnings. Pensionable earn-
