One of the issues that are currently in the spotlight in Spain is the sustainability over time of the pension system we currently have and whether they are sufficient or not. While some economists like Francisco Rodríguez think that they are not sustainable over time and some early retirees complain that they are small due to the cuts they have suffered, like the ASJUBI retirees40, other financial experts like Gonzalo Bernardos see them as appropriate and even generous.
The professor of Economics at the University of Barcelona is clear that pensions in Spain are not insufficient. “There is a debate about whether public pensions are generous or, on the contrary, completely insufficient,” Bernardos refers, in a video from the ‘Global Consumer’ account.
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“You charge according to what you have previously quoted, either in amount, or in number of years. These are the two essential variables,” he slides. Gonzalo Bernardos highlights that those who contribute more receive higher pensions, and that the amount also depends on the years worked.
However, his reflection goes further. The contributor to ‘laSexta Noche’ emphasizes that the key point is the State’s contribution. “We have to see if the administration puts money in or not,” he says. It is questioned whether the public system will be able to continue meeting pension expenses in a context of population aging.
According to Bernardos, the data show that Spain is a unique case within the OECD countries. “Spain is the second OECD country in which retirees earn more in relation to their last salary. In net terms: 83%,” he says. This implies that Spanish pensioners retain a significant part of their purchasing power upon retirement, unlike other European countries where benefits represent a much smaller percentage of their final salary.
“Spain is a country where at 65 years of age the life expectancy is 21 years. According to various studies, what retirees pay is only enough to cover between 11 and 13 years,” he explains. Bernardos emphasizes that there is a gap between what workers contribute during their active life and what they receive after they retire. This difference is covered with public funds, which, according to him, shows that the Spanish pension system is “generous.”
“Therefore, without a doubt after these data we can say that pensions in Spain are generous,” he says. He also makes comparisons with other European countries: “Salaries in Spain are much lower than in Germany, but let everyone know, Spanish public pensions are higher than those of Germans,” he insists.
The economist mentions Germany as an example, since it is often presented as a model of economic efficiency. “For this reason, unfortunately, there are many German retirees who have to work while retired to be able to migrate with dignity at the end of the month,” he analyzes.