The Independent Authority for Fiscal Responsibility (Airef) has updated its analysis of the Spanish pension system in order to offer the Congress of Deputies a basis on which to recommend new measures to the Government.

The agency estimates that

spending on pensions in 2050 will account for 14.2% of the GDP of the Spanish economy, and recommends delaying the effective retirement age from 64.1 years to 66

and increasing the contribution career from the current 25 years to 35 to reduce that expense by 1.4 points.

Cristina Herrero

, president of AIReF, explained today that the 14.2% of GDP that public spending on pensions would mean in 2050 is 3.3 points more than current levels, and one more point compared to her previous forecast for 2048. The agency works with forecasts that, it admits, have a "high degree of uncertainty".

It does so, for example, on the grounds that

the coronavirus crisis, which caused a 22% drop in GDP in the first half, will not cause structural damage to the system


That is why she recommends to the parties that must submit their opinion to "deepen" reforms that have "an immediate path and execution."

The increase in spending is mainly derived from the


of the population and the increase in life expectancy, which would be partially offset by the evolution of the labor market and by the maintenance of the

reforms introduced in 2011 as well as the application, such and as planned, of the sustainability factor from 2023.

According to AIReF forecasts, the Spanish population will rise to 54 million in 2050, while the working-age population will remain above 30 million people throughout the forecast period.

For this reason, the dependency ratio of the system, which relates the number of people over 66 years of age with the working-age population, would be 53% in 2050. If in 2010 there were almost five people per retiree, in 2050 there will be two .

"It is the true challenge of the system", has warned Herrero.

According to the criteria of The Trust Project

Know more

See links of interest

  • Last News

  • Programming

  • English translator

  • Work calendar

  • Daily horoscope

  • Movies TV

  • Topics

  • Coronavirus

  • Eibar - Athletic Club

  • Catalan Grand Prix, live

  • Tottenham Hotspur - Newcastle United

  • Atlético de Madrid - Granada CF

  • Barcelona - Villarreal