Spain has one of the most generous pension systems in the world. The replacement rate (relationship between the amount of the pension and the last active salary) is around 80%.
But forecasts suggest that in the middle of the century, when the workers who have joined the labor market in recent years retire, this rate could drop below 50%. The public pension system in Spain is pay-as-you-go, that is, it finances ongoing benefits through contributions from active workers. The benefits for companies are also, to a large extent, of fiscal nature.