The purchase of fictitious insurance years has now become an integral part of the retirement process.
According to estimates by experts in the field of social security, nearly one in two new retirement applications is now accompanied by a request for recognition of fictitious years, as thousands of insured individuals seek to fulfill the required 40 years of insurance coverage and retire with a full pension at age 62.
In fact, there are quite a few who, despite leaving the active insurance system, continue to work even after retirement, taking advantage of the current regulatory framework.
These figures take on even greater significance when combined with the massive increase in retirement applications. In the first half of 2026 alone, it is estimated that new applications to the EFKA reached nearly 110,000, a fact that foreshadows yet another year of particularly high turnover.
Reaching 40 years of insurance coverage is now the primary goal for most insured individuals seeking to retire at age 62, even if this means they will have to pay amounts that in many cases exceed 15,000 or even 20,000 euros to have the required time recognized.
As attorney Aspasia Papathanassopoulou points out on Euro2day.gr, the current social security system has led an increasing number of insured individuals to seek recognition of fictitious service periods.
“Thus, given the current landscape of retirement requirements—with the most common scenario being reaching the age of 62 and having a total of 40 years of insurance coverage— many will need to have fictitious insurance periods—for children, education, gaps in coverage, and military service—recognized in order to meet the required 40 years or 12,000 days of insurance coverage,” she states.
Ms. Papathanassopoulou points out that prior to Law 4387/2016, the cost of buying back periods for children, education, and insurance gaps was fixed, regardless of earnings or insurance category, while for military service it was linked to the insured person’s salary. Furthermore, a lump-sum payment was accompanied by a 15% discount.
Following the implementation of Law 4387/2016, as amended by Law 4670/2020, the cost is calculated differently:
- For salaried employees, it corresponds to 20% of the earnings from the last month of full-time employment prior to the application.
- For self-employed individuals, it is equal to the main insurance contribution for the insurance category selected in the last month prior to the application.
- In the case of a lump-sum payment, the discount is now set at 2% for each recognized year. Conversely, when installment payments are selected, repayment is made by withholding one-quarter of the monthly pension until the amount is paid off.
- For civil servants, a transitional arrangement applies to those who submitted an application by the end of 2016, while as of January 1, 2020, the cost has also been set at 20% of the pensionable earnings for the month the application was submitted.
According to Ms. Papathanassopoulou, the current framework creates an incentive to buy back a greater number of months, since as the recognized service time increases, so does the total discount on the lump-sum payment. However, the total cost can amount to several thousand or even tens of thousands of euros, a fact that leads many insured individuals to either pay in installments or choose to have the amount deducted from their future pension.
Examples illustrating the actual cost
Private-sector employee earning 1,800 euros
An insured person earning 1,800 euros pays 360 euros for each month they claim. To buy out 36 months due to having two children, the initial cost is 12,960 euros. With the 6% discount for a lump-sum payment, the final amount is reduced to 12,182.40 euros. If they wish to claim one year of military service, they will ultimately pay 4,233.60 euros instead of 4,320 euros.
Private-sector employee with a salary of 2,150 euros
With a monthly buyout cost of 430 euros: Recognizing four years of study initially costs 20,640 euros, but with an 8% discount, the amount comes to 18,988.80 euros. One year of military service ultimately costs 5,056.80 euros.
Civil servant who applied in 2016: For a civil servant with October 2011 earnings of 1,850 euros, the cost was significantly lower. Recognition of four years of study cost approximately 5,864 euros after the discount. Recognition of one year of military service cost approximately 1,562 euros.
Civil servant who applied in 2018 with earnings of 2,150 euros: The three years for two children cost approximately 9,706 euros after the discount. One year of military service cost approximately 3,373 euros.
Civil servant who applied in 2020 or later. Under the new system, for the same salary: The three-year leave for two children now costs 14,551.20 euros. One year of military service amounts to 5,056.80 euros. The comparison clearly shows that the buyout cost after 2020 is significantly higher than under the transitional arrangements of previous years.
What Applies to TSAY and TSEMEDE
Ms. Papathanassopoulou also presents examples for insured persons of the former TSAY based on the 2026 insurance categories.
The monthly buyout cost amounts to:
- 185.09 euros in the 1st category,
- 222.12 euros in the 2nd category,
- 281.82 euros in the 3rd category,
- 440.64 euros in the 5th category.
As the reputable attorney points out, in the case of a recognized period—for example, 18 months—the higher the insurance category, the higher the future pension.
Specifically:
- with recognition in the 1st category, the gross pension amounts to 1,176.44 euros,
- in the 2nd category, it is 1,182.44 euros,
- in the 3rd category, it is €1,310.52,
- and in Category 5, it amounts to 1,488.10 euros gross.
The pension is subject to the applicable health care contributions, tax, and, where applicable, the pensioners’ solidarity contribution.
The situation is similar for those insured under the former TSEMEDE.
The full pension at age 62 amounts to:
- 1,367.85 euros gross when classified in the 6th insurance category, with a buyout cost of 597.06 euros per month,
- €1,301.41 when classified in the 5th category,
- €1,208.60 when classified in the 2nd category.
At the same time, intermediate scenarios arise when the insured person is currently in the 6th category but has their imputed time recognized in the 2nd category, resulting in a gross pension of 1.241.37 euros or even 1,273.66 euros if they remain in the higher category through 2027.