Guarantees

The new Hellenic Auxiliary Pensions Defined Contributions Fund is part of the first pillar of the social security system and the State guarantees the total capital in real terms, i.e. the total amount of contributions paid by insured persons and/or their employers. Therefore, the insured persons shall be awarded an auxiliary pension at least equal to the contributions paid, adjusted for inflation.

In this way, insured persons are provided the most effective protection against investment risk. In practice, it is expected that the State guarantee will rarely be required. This is because experience has shown that despite the fluctuation of financial markets in the short term, in the long-term, for periods comparable to pension schemes, return on investment is quite good and significantly higher than inflation.