Greece has been criticized by its creditors for the huge amount of money it spends on pensions. Until the euro zone debt crisis hit, Greece offered one of the most generous benefit packages to retirees in Europe.
After 2010, measures were put in place by the Greek government that encouraged workers not to take early retirement, making retirement before the age of 60 very difficult. At the same time, the number of annual pension payments was reduced from 14 to 12, after the government eliminated "bonus payments".
The IMF praised the reforms at the time and while the "primary" or core pay-as-you-go system was overhauled, the "auxiliary" or secondary system made no changes.
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As it stands currently, Greece still spends more than any other country in the European Union on pensions as a proportion to GDP – with the country shelling out a whopping 17.5 percent according to Eurostat.
However this does not give us the full picture, as Greece has an aging population, with one of the highest "age dependency ratios" or the level of support given to younger and older citizens by the working age population.
The country's old-age dependency ratio is around 30 percent in Greece, one of the highest in Europe, according to Eurostat.