The sustainability of the public pension system in Spain has returned to the center of debate after two retired brothers from Barcelona warned of the urgent need for deep reforms. Antonio and Juan José López, a retired professor and doctor, argue that, without structural changes, the current model may not guarantee the dignified survival of pensioners in the coming decades, especially in an increasingly aging country.
The Spanish public pension system is undergoing complete transformation, in a context marked by the aging of the population and the reduction of the contribution base. According to Social Security data for October this year, more than 10 million benefits are currently paid to more than 9 million people.
Monthly expenditure reached a historic value, exceeding 13,600 million euros. The average pension is 1,315.3 euros per month, figures that illustrate well the scale of the financial challenge that the State faces to ensure the continuity of the system, according to the Spanish digital newspaper Noticias Trabajo.
Despite these high values, long-term sustainability remains an unknown. Demographic pressure and the fragile job market call into question the ability to guarantee decent pensions for younger generations.
Pensioners live better than young people
Antonio López, a 71-year-old retired mathematics teacher, believes that the current generation of pensioners lives, in many cases, in better conditions than young workers. In an interview with Catalan radio RAC1, he explained that “salaries are low and jobs, unless they are very qualified people, are low-skilled”.
According to Antonio, cited by the same source, this reality has direct consequences on the quality of life of young people. “Young people receive little money and, if they want to buy a house, the prices are very high,” he said, pointing to the difficulty in achieving financial stability.
This vision is shared by his brother, Juan José López, an 83-year-old retired doctor. For him, “young people live worse than pensioners because salaries are very low and, although pensions are not high either, they are still higher than what many young people earn”.
Rethink the financing model
Given this scenario, Juan José advocates a deep reflection on the Social Security financing model. In his opinion, guaranteeing the future of the system implies accepting a greater tax burden, even though he recognizes society’s resistance to this solution. “In Spain we need to ask for more taxes and people are not willing to pay,” he said.
With a monthly net pension of around 2,500 euros, he admits that he “lives as best he can”, but considers it unfair that pensioners with long contributory careers see their income limited. “It is not fair for a pensioner with more resources to receive less, because if he worked and paid for many years, the pension is a consequence of that work”, he argued, cited by the same source.
The retired teacher receives a similar amount and recognizes that his pension allows him to live in peace. Still, he is apprehensive about the future. “I think that, within a few years, there will be no money for pensions if some things are not changed,” he warned.
Urgent reforms and new solutions
For Antonio, the current financing system is not sustainable in the long term and requires urgent reforms. Among the possible solutions, it points to changes in the way revenue is collected and the importance of young immigration as a factor in balancing the system. “I hope they change the way they collect taxes or that young people come from other countries to pay taxes,” he said, highlighting the role that new taxpayers can play in the sustainability of Social Security.
Although both the retired professor and the doctor recognize that their personal situation is comfortable, the two brothers warn of an uncertain future if timely measures are not taken. From his perspective, delays in reforms could compromise the right to a decent pension for future generations, according to .
Framework in Portugal
In Portugal, the public pension system is regulated by the Social Security Basic Law, approved by Law No. 4/2007, of January 16th. This diploma establishes intergenerational solidarity, universality and financial sustainability of the system as fundamental principles.
Old-age pensions are mainly financed through contributions from active workers and employers, being complemented by transfers from the State Budget. As in Spain, the aging of the Portuguese population and the reduction of the active population represent a structural challenge.
Portuguese legislation provides for mechanisms such as the sustainability factor, the legal retirement age indexed to average life expectancy and incentives to remain in the job market. The possibility of diversifying financing sources, including tax revenues, is also enshrined as a way of ensuring the long-term viability of the system.
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