The Spanish Public Pension System: Forecasts and Suggestions For Improvement

Summary

The public pension system is a basic pillar of the welfare state. The Spanish system is perfectly viable and sustainable, provided that it adapts to ongoing economic, social and demographic changes in Spanish society.

Key points

• Key points:
• The main challenge that the Spanish system is facing is the result of two excellent pieces of news: people are living longer and the baby boomer generation.
• According to current forecasts, the system's income trend (corrected by the economic cycle) is growing at a rate of less than 4%, around half the rate observed before the crisis.
• In 2018 the deficit amounted to EUR 17.917 billion, which is equivalent to some EUR 145 from the average monthly retirement pension in Spain (EUR 1,140.7 in September 2019).

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