Retirement is a milestone in our lives, a goal for many people who have been working for many years in order to provide for their families and enjoy their old age. The problem is the sustainability of the Social Security pension system (annual losses of its Reserve Fund have reached 12,000 million €).
Data on savings and pensions in Spain
The increase in life expectancy is causing that, in the relatively near future, there will be more retired people than working-age population. This puts our welfare state at risk.
The Aviva Institute has carried out a study in which the future outlook for the pensions of Spaniards is consulted (see the link below). The results are very shocking:
- 71% of Spaniards believe that their generation will not have a public retirement pension and, in the event of receiving one,
- 84% believe that it will not be enough to cover minimum expenses. Scandalous percentages.
These data reflect a growing concern about this issue.
The difference between Spain and other European countries
Unfortunately, unlike in other European countries, the economic situation is not conducive to household savings, as we know. Moreover, as the replacement rate in general, at the European level, is lower, their awareness of private savings is much higher. In Spain, on the other hand, we have always been confident that the pension would cover our expenses once we retired.
This is why we have a problem with the lack of a savings culture, which every day leads to more worries among the elderly, who see how the public pension does not allow them to cover their most fundamental expenses.
However, we have already seen a slight improvement in household savings, according to recent studies, which suggests a more optimistic outlook for the future.
How can we start saving?
There are a number of guidelines that we should follow:
- Consistency: if you limit yourself to “trying” to save every month, it will be difficult for you to achieve it. Try to force yourself to save by opening a product so that every month you receive a small charge in your account.
- Adjust your expenses: for three to four months, make a list of all the expenses you have. You are sure to find something that you had not thought of, and that is totally dispensable.
- Set yourself a time-bound goal: this way you are sure to have a motivation to save.
If you don’t know how to get started, or you want to know if you are doing it right and if you are in the best possible product, contact us. We’ll help you get there, and also how to take advantage of the tax benefits currently available.
