Spanish Pension: Adjusting Biological Life Expectancy To That Of Social Life
The IMF highlights that the Spanish population, like that of other developed economies, will age over the coming years.
The number of pensioners is increasing faster than the number of active workers. So the average salary is beginning to come in at the same level or below that of the average pension. In 2007, the number of pensioners stood at 6.4 million and in 2017 9.6 million. The Social Security forecasts that between 2017 and 2022, the deficit between contributions and benefits will be 11.719 billion euros. Another estimate, which is impartial and rigorous and comes from the Independent Authority for Fiscal Responsibility (AIRef in its Spanish acronym) puts this deficit at 16.144 billion euros.
So a threat to public accounts and a dangerous invitation to use public debt. That said, and despite the fact the economy is growing above 4% in euro terms, the government has limited the proposed increase to a very modest 0.25% with the sensible and cautious aim of containing the deficit and public debt.
Read More: The Corner