In Spain, especially among the youngest, fear is growing that the pension system could be exhausted. That is, the new generations cannot collect a retirement pension because the money has run out. A belief that the Minister of Social Security, Elma Saiz, has wanted to dispel on more than one occasion, indicating that The system is safe and pensions “are not at risk”.
Despite his words, some economists doubt its sustainability, pointing to factors such as the increase in amounts, the aging of the population or the drop in birth rates. The economist Leticia Poole, doctor in Economics and Business Sciences, is one of them, and she stated this during an interview for the “TruthTime Project” podcast.
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“They are not going to collect the pension, start saving, the bills are no longer working out,” she explained emphatically. The main reason, in a very summary way, is the following: “pensions are part of two hypotheses, that we have children and two, that we work. If we neither work nor have children, it is over.” Therefore, Poole warns that “we have to think in another way.”
“We have to tell people the truth: your money is not in a piggy bank. Your money is going to pay other retirees and it does not arrive”
Faced with this scenario, Leticia Poole defends that “we must reach a state agreement and tell people the truth: your money is not in a piggy bank. Your money is going to pay other retirees and it does not arrive. And when you retire, much less will it arrive for your children.”
In fact, he assures that the system, currently, “is a pyramid scam.” Regarding how it can be maintained currently, the economist explains that “with debt.” Now, what do you mean by this? “That my children are not only going to have to pay my pensions, but also those of their grandparents. Because their grandparents’ pensions have been paid with debt.”
“We have to change people’s sides of the ship, from receiving subsidies to paying contributions”
Lastly, Leticia Poole is committed to developing an ethical awareness of the population, starting by “cutting subsidies.” “This is like a ship. If you are on the subsidy side, you weigh twice as much for the subsidy you receive and for the tax you do not pay,” he explains. For this reason, he defends that “people must be changed from receiving subsidies to paying contributions,” adding that “you cannot charge something if you don’t need it.”