The debate about the system of aid and benefits in Spain is once again on the table. On this occasion it was the turn of the subsidy for those over 52 years of age, a benefit of 480 euros per month intended for those who have unemployment exhausted and have not yet reached retirement age. For financial advisor Iván Méndez, who has analyzed this issue on his social networks, the operation of this subsidy sends a worrying message: “don’t work, parasite”.
In her video, Méndez tells the case of a client who has 12 years left until she retires. The woman has two options, either continue working earning the minimum wage or take advantage of the subsidy for those over 52 years of age and receive 480 euros per month.
On the surface, the second scenario seems less advantageous. However, the expert details that, in terms of contribution, the subsidy is more beneficial than continuing to work. As he explains, the difference is in what the State contributes for the beneficiary, and not so much in the money he receives directly.
You will receive more pension than working
The expert compares the two scenarios. In the first, that of continuing to work, the woman would receive a pension of approximately 1,050 euros per month after 12 years. On the other hand, if she opts for the subsidy, the State would contribute 1,726.50 euros per month for her, that is, 500 euros more than what she would contribute while working.
“If during these 12 years they receive the subsidy, the result is that when they retire this person will receive €1,411 per month,” says Méndez, highlighting the contradiction that, according to him, encourages work inactivity and penalizes those who decide to continue working.
The advisor considers that these types of incentives reflect a structural failure of the system, since they reward dependency and not effort or productivity. “What is the system forcing you to do? The message is clear: don’t work, you parasite,” he states bluntly.
Méndez harshly criticizes the structure of the Spanish benefits model, which he describes as “parasitic.” In the text that accompanies his publication, he adds: “The system is not designed so that you prosper, but so that you depend. The subsidy for those over 52 years of age is just one more example of the parasitic system: it gives you just enough to survive, but not to advance.”