As we have been saying, Social Security is in a rather unpleasant situation, with a budget and balance of its “budget and balance".“piggy bank”The “very tight". With each passing year, different "records”A graph reflects all of this.
The retirement pension target
The old-age pension has always been seen in Spain, since its introduction, as a assurance of a reasonable income when we cease to be the active population of our society.
The «substitution rate».» reflects how much of our last active salary is represented by the retirement pension.
An example: if my last salary was €2,000 per month and my first pension is €1,500, the replacement rate is 75%. Spain has always had one of the highest replacement rates in Europe. (Germany and the UK have a rate of around 30%, less than half that of Spain).
This certainty of a good pension is being called into question The data obtained periodically over the last few years. These data show that, in view of the abyss of retirements in the next few years due to the generation of the «new generation", the "new generation" is not the only one that will be able to retire.«baby-boom«We do not know the future of social security with regard to pensions.
The chart that captures this difficult situation
This image reflects how year after year, the cost of our pensions continues to grow, by:
- the increase of pensioners and
- because the paychecks of people retiring are getting bigger and bigger:
We are getting dangerously close to the 10 million retired people
The importance of saving for the future
The conclusion to be drawn from all these figures is that personal savings is what in other EU countries acts as a support for future retirement.
Without personal savings year after year, the situation after retirement could be critical. The replacement rate will gradually decline in the face of the measures taken by the government, which is well aware of the difficulty of maintaining the pension system as we know it.
If you want to see what savings schemes adapt to you, do not hesitate and contact us. Our Savings and Investment Department will help you. Our clients are our best guarantee.
