- Spain's pension system is facing financial challenges due to an ageing population and high public debt.
- The country has a comparatively generous pension system, with pensions equating to 80% of net pre-retirement income.
- To address the issue, Spain's government is proposing a new package that demands more from younger generations to increase contributions.
- This has caused controversy, with critics arguing that younger people will have to work more years to receive the same pension as current pensioners.
- The reforms aim to improve equity, with the government calculating that a 25-year-old would receive an extra €20,000 in pension benefits under the new system.
Spain’s fix for pension shortfall: make younger people pay
Spain's government is proposing a pension reform package that demands more from younger generations to increase contributions and improve equity amid demographic challenges and high public debt.