Greece’s funded pension assets rise 20%, but remain at just 1.3% of GDP

According to the OECD’s latest report, OECD Pensions Outlook 2026, assets held by funded pension funds in Greece increased by 20% in 2025, reaching €3.2 billion, equivalent to 1.3% of GDP. This represents one of the highest growth rates, reflecting the expansion of the sector, although it does little to narrow the substantial gap between the Greek market and countries with a long-standing tradition of occupational and funded pension provision.

The comparison with international figures highlights the considerable difference in scale. Across OECD countries, assets held by funded pension funds increased by almost 12% in 2025, reaching $70.4 trillion, equivalent to 95.7% of combined GDP. Around two-thirds of these assets are concentrated in the United States, where funded pension saving is a mature and highly developed institution.

In Greece, asset growth is linked both to the expansion of Occupational Pension Funds and to the establishment of TEKA in 2022, which introduced a new supplementary pension model for younger insured individuals.

From €25 Million in 2007 to €3.2 Billion Today

The development of funded occupational pensions in Greece began gradually around two decades ago. A key institutional milestone was Law 3029/2002, which established voluntary occupational pension provision as a supplementary pillar of the public pension system.

In the early years, however, the sector’s development remained limited. In 2007, for example, the total assets of Occupational Pension Funds amounted to just €25 million, while membership was restricted to only a few thousand employees.

The first substantial boost came in 2013, when four public supplementary pension funds were converted into mandatory occupational pension funds. These were:

• The Occupational Pension Fund for Insurance Agents and Insurance Company Employees.
• The Occupational Pension Fund for Pharmaceutical Industry Employees.
• The Occupational Pension Fund for Food Retail Employees.
• The Occupational Supplementary Pension Fund for Petroleum Company Employees.

The inclusion of these funds in the occupational pension system resulted in a significant increase in assets, which approached €1 billion in 2013.

This was followed by the gradual expansion of the market, with new voluntary Occupational Pension Funds established by banks, businesses and professional sectors. Their number has now reached 28, with approximately two-thirds having been established since 2019.

This expansion has also been accompanied by increased employee participation, with members of occupational pension funds now representing approximately 6% of the workforce. Despite this progress, the percentage remains low, highlighting the considerable potential for further development of the second pension pillar.

TEKA Reshapes the Supplementary Pension Landscape

The establishment of TEKA in 2022 marked a turning point in the development of Greece’s funded pension model. The new fund manages supplementary pension coverage for younger insured individuals, introducing a system in which contributions are invested to build individual retirement savings.

Unlike the traditional pay-as-you-go system, under which contributions from today’s employees finance the pensions of current retirees, the funded model involves accumulating and investing contributions to finance the future benefits of the individuals making those contributions.

For individuals insured under the previous system, supplementary pensions continue to be provided through the Unified Auxiliary Social Security Fund, based on the pay-as-you-go model.

TEKA’s progress illustrates the growing momentum behind the new institution. According to the fund’s available data, its reserves had reached €630 million by June 2026, while the number of insured members had exceeded 780,000.

The participation of hundreds of thousands of insured individuals is gradually creating a new pool of pension assets, which is expected to grow as insurance coverage expands and contributions continue to accumulate.

Nominal Investment Returns Reach 4.9% in 2025

Beyond growth in membership and contributions, a critical factor in the long-term development of the funded pension system is the investment management of available assets.

As the OECD points out, investment returns generated by pension funds have generally been positive in recent years, with exceptions during periods of international economic and financial crises.

In Greece, the nominal investment return of funded pension funds stood at 4.9% in 2025. In real terms, after accounting for inflation, the return reached 2.3%.

The difference between nominal and real returns highlights the importance of inflation in preserving the purchasing power of pension savings. In a system where the final pension benefit is linked to accumulated capital and its investment performance, long-term returns take on particular significance.

In this context, the OECD stresses that achieving stronger returns over the long term requires exposure to equity investments, alongside portfolio diversification and appropriate investment risk management.

Where Greek Pension Funds Invest Their Assets

The investment portfolios of Greek funded pension funds continue to be characterised by a significant allocation to fixed-income securities and liquid assets.

More specifically, in 2025, 36.2% of investments were allocated to bonds and treasury bills, while 17.4% were held in cash and bank deposits. Equity investments accounted for 15.3% of total portfolio assets.