Future retirees will receive more than double the pension they have contributed to Social Security
Currently, the pension system is already operating under a scenario of imbalance: for every euro contributed, an average of 1.62 euros is paid out (62% more). The Instituto de Actuarios Españoles (Spanish Actuaries Institute) forecasts a worsening situation.
The Spanish pension system is currently operating under a scenario of imbalance, with 1.62 euros paid out for every euro contributed. The Instituto de Actuarios Españoles predicts this imbalance will worsen due to moderate economic growth, increased life expectancy, and the profile of contribution bases. By 2045, workers retiring will have a average factor of equity of 2.14, and by 2065, this figure will reach 2.20.
The main drivers behind this actuarial imbalance are the slowdown in long-term economic growth and the increase in life expectancy.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
