Spain and Japan are not so different. At least when it comes to demographics and projections for future. They have a high life expectancy and a low birth rate. And this, if viewed from perspective of pensions and welfare state, is based on following basis: Spain in 2050 will have 76 seniors above 65 years for every 100 between 20 and 65. Only Japan will have a slightly higher ratio and surpass countries such as Italy, Portugal, Greece or Korea, according to seventh edition of OECD Pension at a Glance report released this Tuesday.Learn More
- The pension piggy bank only has money for one more pay
- Spain is only EU country to unlink rise in price and salary pensions
- Social security is run out of equity after six years of deficit
- The average pension in Spain rises 2% and is located at 926 euros per month
At this time this ratio in Spain is located something above 30 people over 65 years for every 100 people between 20 and 65 years. This assumes that projected increase for next decades will be more than 40 points, something that can only be avoided with a new massive arrival of immigrants or a very substantial increase in birth rates. This ratio will grow in all OECD countries, but only South Korea is going to surpass Spanish jump.
"Ageing presses on financial sustainability and adequacy of pension system income", breaks down organization that brings industrialized countries toger in a specific note on Spain.
To financial pressure of Envjenecimiento, OECD adds net replacement rate of pension on last wages earned by worker. In Spain this is now located at 82% compared to an average of 63% among countries of club, ie at top of table. Although re are countries with a higher rate, for example, Turkey, it has 102%. And re are like United Kingdom where rate drops to 29%.
The organization itself admits that sustainability factor has not yet entered into force, which will link initial pension of retirees to life expectancy from 67 years at time of retirement. Although it lowers its impact among those who have had better contribution careers: "The pension system will grant relatively high replacement rates for workers with a full career, especially for wage earners with average income and "High, despite introduction of sustainability factor."
The OECD pensions report also emphasizes that Spain is one of most constrained countries in order to continue working after retiring. According to think tank of developed countries, re are seven or countries that put a lock on it.
The government has announced that it wants to make fully compatible possibility of combining work and pension. This would mean that someone who is charging his pension could continue to work and Cobrándola in full. Since 2013 that possibility is limited to 50% and must be paid 8% on basis of quotation declared as a share of solidarity.
One of regrets leading this edition of pension at a Glance is that since last time report was published, pace of reform of pension systems has been slowed.