"The aim of this paper is to estimate the relative importance of annuities and transfers in Greek retirement benefits and to assess their impact on intergenerational and intragenerational equity. We analyse a large sample of private sector workers retiring in 2008. Adopting a longitudinal approach, we compute the net present value of contributions paid and benefits received by individuals over their life course. We define the difference between the two as the implicit transfer, which can be either positive or negative. Lifetime retirement benefits are calculated both according to the rules in place at the time of retirement, and after the spending cuts introduced in 2010-2013. Our findings suggest that for the vast majority of retirees pension benefits are heavily subsidized, i.e. exceed the actuarially fair level paid for by social contributions. Austerity policies have reduced but not eliminated this subsidy."

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