The pension system and its sustainability over time is now at the center of the debate in Spain following the latest statements by some politicians and others, who are using this issue to campaign for the early elections on November 29. While the Executive assures that pensions will rise according to the CPI no matter what happens in the next elections and that the current system is in “good health”, from outside the Government they do not see it so clearly. In fact, the Vox deputy, José María Figaredo, did not hesitate to affirm that the Spanish model is “broken.”
Now is a good time to compare what PSOE and PP did with pensions in their last years in Government, especially for those retirees who are somewhat undecided when facing the new elections. not only to see if they rose more or less, but also with the idea of knowing whether the current pension model should be changed or not to make it more sustainable over time. An authoritative voice has also wanted to speak out on this topic, such as the economist Gonzalo Bernardos, who said in an intervention on the ‘Más Vale Tarde’ program that the Spanish pension model is “absolutely viable, the only thing that needs to be done is some adjustments that workers or retirees will not like.”
Gonzalo Bernardos’ “adjustments” for the pension system
The economist recalls that the deficit between pension income and expenses exceeds 70,000 million euros. Therefore, he exposes his possible “adjustments” to reverse the situation.
Among the possibilities is increasing workers’ social contributions, an idea that the economist rejects “because it would mean that workers earn less.”
Another alternative would be to delay the retirement age or reduce the pensions that retirees receive. Bernardos is in favor of the first, but rejects reducing pensions.
The risks for pensioners
Bernardos also analyzes some risks that pensioners may face, such as adopting the Swedish model, in which the pension depends solely on what the worker has contributed: “It means a drop in pensions.”
Gonzalo Bernardos, economist: “The camping trips, the demonstrations and the new legislation are going to scare many owners”
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Finally, the expert is proud of Spain’s current pension system, but emphasizes that it is necessary to make some modifications to guarantee the model over time.