Young people start working later and this, of course, will make a difference when they retreat.
As accounts about reform They are doing (also) in Spain.
Young people start working later and this, of course, will make a difference when they retreat.
New BBVA Foundation accounts and the Valenciano Institute of Economic Investigations estimate that those who are now entering the job market, or will enter soon, will have to renovate 6 years later than the current panorama.
I.e, renovate at 71. This in 2065, and if they want to maintain their level of living while they work, reinforces the radio.
In numbers: the employment rate of 43.2% – for Young people from 16 to 29 years – It is 15 percentage points lower than 2007. Many young people will reach 2065 With a contribution to 30 -year social security, which will penalize your reform calculations.
How they start working later, Staying working until 65 is not enough. In addition, increased contributions – in the latest changes in social security rules – will force these young people to contribute more and thus receive a pension that will be a percentage lower than their salary. The replacement rate in Spain is 77.1%and should lower to 75.3%, dropping later to 57.6%.
The predictions in are even less encouraging: the replacement rate – the ratio between the pension and the last salary – should be 40% in a few years. That is, a person who received 1,000 euros in a month (salary) will receive 400 euros the following month (pension), if nothing is largely changed.
Returning to Spain, but in the short term: in 2027, The standard reform age will be 67 years. And it will take 37 years of contributions to receive 100% of the pension. The age of renovation can early up to two years if the retired is 38.5 years of contributions.
Interestingly, this BBVA Foundation report and the Valenciano Institute of Economic Investigations address possible changes in neighboring countries of Spain.
Overall, today’s Spanish young people will have to make a greater contribution and support a reduction in the replacement rate.
