2023-10-18 11:15:10
The consulting firm Mercer, annually and for years, fto an annual ranking of retirement systems around the world and Spain is often not in a good position. This year, it has only achieved 28.5 points out of 100 in terms of sustainability.
This analysis is done in 47 countries and analyzes whether the current system will be able to continue working in the future or whether it will have to be changed because it will bring certain problems with pensions. In order to maintain a system of pensions and retirements in perfect conditions, certain parameters must be measured and accounted for and thus avoid a crisis in the pensions of retirees, among others.
Spain is very poorly positioned in terms of sustainability, but still there are 2 countries below us: Austria with a score of 22.6 and Italy with 23.7. Argentina i Brazil have a score equal to or similar to that of Spain and do not even reach a 3 out of 10, so they are all suspended in this matter.
Major changes to retirees’ pensions from 2024
The analysis of Miguel Ángel Menéndez, director of the Mercer Spain Wealth area
The birth rate has fallen and there has been a sharp rise in the inflation These two particular cases are having certain problems when it comes to maintaining a pension system with a sustainability maintained over time. Even though, they are not the only points to improve in order to raise the score and ensure that minimum pensions are guaranteed in the long term.
But everything couldn’t be so bad and there are two points in which Spain approves with a remarkable high: in the amount of pensions (imports), with and 79.7 and with confidence in the country’s pension system, reaching 79.2 points.
What is the final result for Spain
Spain passes with 61.6 points in the global ranking. Although the result is slightly below last year’s, two tenths below, it continues to maintain the same position in relation to the 47 countries analysed.
Spain maintains the 26th position out of the 47 analysed: it is not so bad
The Netherlands, Iceland and Denmark are the 3 countries consolidated with the more robust pension systemsaccording to the report published yesterday, October 17, 2023. And Spain has achieved the grade ‘C+’.
The grade ‘C+’ for Spain
That means, Spain’s pension system has positive elements, but there are shortcomings and risks that must be addressed to achieve long-term sustainability.
Although, Spain has already made many improvements to the public pension system. Minister José Luis Escrivá has introduced several measures to increase the revenue of the system, which has been in deficit since 2012.
The PSC proposes to eliminate the lifetime pensions of the former presidents of the Parliament
The measures taken by the government of Pedro Sánchez
Acting Minister José Luis Escrivá under Sánchez’s mandate, he has carried out several measures to improve the deficit that had been dragging on since 2012. Some of these measures have beenintegrate an intergenerational equity mechanism (MEI), a new solidarity quota, the extra increase in the maximum bases and the new contribution system for autonomous depending on your income, among others.
The recommendations of the Mercer study
To improve the score, you must give more help to people with a low purchasing power and to people with an older agein addition, also the coverage of workers in pension plans must be increased through membership and finally, it must be achieved increase the participation rate of the active population in the most advanced ages.
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