The government will phase out the “personal difference” for around 640,000 pensioners in two stages to allow annual pension increases, which these pensioners have been missing for the past three years due to high personal differences. Last year, they received instead a personal difference allowance of €100–200.

Under the two-stage plan, the personal difference will be reduced by 50% in 2026 and fully abolished in 2027. Fiscal constraints, as noted by Prime Minister Kyriakos Mitsotakis, prevented immediate abolition, and there will be no expansion of the criteria (age or income) for the €250 allowance, which was established as a permanent measure in November.

Impact for Pensioners:
For example, a retired IKA pensioner with 25–27 years of contributions receiving a total pension of €883 and a personal difference of €42 will see the difference reduced to €21 in 2026, bringing them closer to qualifying for increases without actually receiving them that year.

The two-stage reduction benefits both those with small personal differences, who will be eligible for increases sooner, and those with larger differences, who would otherwise wait 5–10 years to fully offset it. Currently, the largest personal differences—up to €450—are seen among former OAEE pensioners.

Under the current system, about 90,000 pensioners each year gain the right to increases through the gradual reduction of the personal difference. Projections from EFKA indicate that, if the same pace continues, an additional 240,000–250,000 pensioners could see their personal differences eliminated within the next two years. Hundreds of thousands with larger differences will still require 5–10 years to reach the point of receiving full pension increases.

At the same time, Prime Minister Mitsotakis did not announce a new “My Home” housing program but highlighted plans for social housing and the use of public property to provide residences. Specifically, 2,000 homes will be built on former military sites in Athens and Patras, with 25% allocated to uniformed personnel and 75% to citizens without primary residences.