pensions in spain

The Bank of Spain

Bank Of Spain Insists That Measures Are Lacking To Ensure The Sustainability Of Pensions

The governor of the Bank of Spain, Pablo Hernández de Cos, has reaffirmed his calculations on the pension system after the Minister of Social Security, José Luis Escrivá, described them as “unsophisticated”. He once again argued that the measures proposed are not enough to ensure sustainability once pensions have been linked to inflation and the sustainability factor has been eliminated: “If you add and subtract, there is a gap that…


pensiones playita

Spain: Spending On Pensions Reached A Record 10.81 Billion Euros In May, Up 4.8%

The Social Security allocated a record 10.81 billion euros to the payment of contributory pensions this May, 4.8% more than in the same month of 2021, the Ministry of Inclusion, Social Security and Migration said on Friday. The Department headed by José Luis Escrivá estimates that spending on pensions stood at 11.8% of GDP in the fifth month of the year, a lower percentage than in 2020 (12.4% of GDP),…


pensiones cuquis

Updating Spanish Pensions With 7% Inflation To Cost Near €12,600 M, Says The Bank Of Spain

The Bank of Spain calculates that updating pensions with 7% inflation would cost the public accounts some 12,600 million, following the entry into force of the pension reform that involves revaluing pensions in accordance with the Consumer Price Index (CPI). According to the central bank, taking as a starting point the approximate expenditure on pensions in Spain and an average inflation for the whole year 2022 of 7% (November over…


pensioners

Brussels Pressures Spain To Decouple Pensions From The CPI

Brussels’ concern about the unsustainability of Spain’s pension reform is growing. This comes amidst spiralling inflation and at a time when it has to validate Minister Escrivá’s reform to authorise the transfer of 12 billion euros from the second tranche of the Recovery Plan. The government has yet to ask the European Commission for the payment of the second tranche of the Recovery Plan, the largest, almost 12 billion euros….


pensiones playita

The CPI Makes The Pension Increase To Be Approved Today 3.125 Billion Euros More Expensive

The newspaper El Economista explains today that on the same day as the Government approves the increase in pensions for this year, it will also have to come up with an extra almost 3.125 billion euros to finance the operation. This follows the deviation between the price estimate forecast by the Executive in the current General Budget and the strong rise in inflation in the last few months of 2021….


pensiones playita

OECD Criticises Pension Reform; The Accounts Do Not Add Up

The OECD criticises the fact that Spain is abandoning the system of automatic adjustment of the pension system – which used the so-called “sustainability factor” – to replace it with the so-called “intergenerational equity mechanism”. The latter involves a rise in social security contributions of 0.6% over 10 years, something that is not even equivalent to the costs of indexing pensions to inflation. According to the OECD, the “intergenerational equity…


escriva

Pension Agreement: Escrivá Has Done What He Could

Fernando González Urbaneja | Escrivá manages to push through the first chapter of the reform book, which has two sides: guaranteeing purchasing power (more costs) and lengthening the retirement age, along the lines of the 2011 reform.To justify the budgetary subsidies to the system, which could distort and politicise it, the argument of “inappropriate expenditure” is used, which is a flexible box where everything that needs to be put in can fit.


pensions spain

Spain: Spending On Pensions Rises 3% In May To A Record 10.154 Million Euros

The Social Security allocated 10.154 million euros to the payment of contributory pensions in May. This is a record figure which is 3% higher than a year earlier, the Ministry of Inclusion, Social Security and Migration reported on Tuesday. More than two-thirds of the pension payroll went to retirement pensions, which totalled 7.303 million euros, 3.6% more than in May last year. Widows’ and widowers’ pensions were allocated 1.74 million…