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.

March 29, 2023 . 8:03 AM

1 min read

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.