Providing for old age through private plans

The rise in the sale of private savings plans in 2019 has been linked to people's increasing realization that the meager pensions provided by the Greek state will not be enough to cover their needs. 

Tellingly, sales in Greece of traditional private savings plans with a guaranteed yield jumped 15 percent in 2019, according to the Hellenic Association of Insurance Companies, which, however, noted that these types of policies will be scrapped for good in 2020.

The imminent halt in the sales of these policies is due to increased uncertainty and low interest rates in the eurozone that do not allow insurance companies to guarantee their client satisfactory yields over a period of longer than 10 years.

In response, people are now increasingly resorting to private plans that can secure yields of 1.5 percent while a portion of their savings also goes toward other...

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