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The Social Security pension system is "generous" . It is a statement that some of the leading experts in the field have made for years, such as Enrique Devesa, and that the Bank of Spain confirms in the Estimate of the financial performance of the pension system that it has published today. According to this document, "on average, the retirement pension system would provide 1.74 euros of pension for each euro of contribution contributed ".

This is what is known as the unit pension cost (CPU), and which presents "a wide heterogeneity both along the distribution and by type of pension". Thus, in the case of new retirement registrations, with data from 2017, that CPU is just over two euros, that is, the amount quoted is doubled and even tripled among the highest percentiles.

The data, on the other hand, is significantly reduced for early pensions, since the figure is 1.39 euros. It also highlights that in the case of voluntarily delayed pensions, which are those that refer to workers who have decided to extend their working lives voluntarily, the figure is the same as the average : 1.74 euros. However, as with the ordinary ones, the figure grew very notably among the highest income brackets.

The document also addresses the internal rate of return (IRR), which "can be interpreted as the return that would be necessary to apply to social contributions during the active life so that the set of contributions to the system is equal to the benefits received from it in the same way. annuity, during retirement ". And " that real average yield of retirement registrations in 2017 would reach 3.5% ", being "a higher yield would correspond to ordinary retirements (4.1%), while the lowest yield would be associated with early retirements ( 2.8%) ".

In the voluntary delays it is observed that, once again, the figures are lower than those of the ordinary ones. "Voluntarily delayed pensions, on the other hand, would obtain an average return of 3.7%, close to but lower than that of ordinary pensions, which would suggest that the incentive to prolong active life would be low from the performance point of view financial ", concludes the body led by Pablo Hernández de Cos.

The document also adds that this conclusion must be taken with some "reserve" given "the relatively low number of this type of pensions that the sample contains." The total number of pensions that have been taken to carry out the entire fiscal year from the continuous sample of working lives amounts to 7,627 , most of them ordinary and anticipated. This same fact also suggests that, as has been explained on numerous occasions, the number of early retirements in Spain is very high.

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  • Pensions
  • Social Security

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