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Spanish pension system’s sustainability ‘not improved’ after reforms say Airef
The Independent Authority for Fiscal Responsibility (Airef) has criticized the methods used by Social Security to balance its calculations and has warned about the lack of sustainability of pensions, which ‘has not improved after the reforms,’ pointed out Airef President Cristina Herrero, who noted that ‘the dynamics of pensions are now worse than before’ the reforms promoted by former Social Security Minister José Luis Escrivá, which included revaluation with inflation and an increase in contributions.
The agency warns that sustainability has not improved and estimates that pension spending will grow by 3.4 percentage points of GDP by 2050, compared to the three percentage points it estimated two years ago.
According to Airef, the average pension of a Spanish retiree represents 65% of the average salary and is expected to reach 67% by 2030, meaning that ‘we continue to hold the position of the second most generous country in the OECD and first, according to Eurostat,’ she emphasized, also recalling that thanks to the pension reform, the generosity rate is falling 13 points less than it would have fallen with the previous revaluation formula of 0.25%.
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