Recently, we read a very interesting article in the newspaper El Mundo, in which they highlighted several data about the growth in Social Security expenditure, and which we are now proceeding to collect. The data reflect the difficult process in which we find ourselves in the face of the sustainability of the pension system in our welfare state.
The social security deficit in figures
For a strong start: 735 million per month, is the Social Security deficit today. For those less familiar with the subject: this means that every month, the disbursement of the various pensions paid out by the social security system (retirement, widows, widowers, orphans, disability, etc.). far exceeds the income it receives through contributions from the labour force.
The figure is detonating. And it is not a random figure, but has been obtained by the Intervención General de la Administración del Estado (IGAE).
Let's look at this graph and then draw conclusions:
Reasons that lead us to this crisis
The most common pension is the retirement pension. Assuming that these data are the same every month, this means that 6,000 more retirees every month to whom a pension has to be paid. This in itself is worrying, but it is even more so if we take into consideration that this pension is on average almost €350 higher than the pensions of pensioners who retire because they have died.
In somewhat lower numbers, but this trend is also true for the other types of pensions: there are more high pensions than low pensions and, as a rule, these benefits are higher than the old ones.
In addition to this these new discharges will last longer than before, given that life expectancy is constantly increasing.
Employment data do not help the SS.SS. deficit
Finally, employment data are not good enough to sustain these higher system costs thanks to workers' contributions. If the average net salary, according to data from the Ministry of Employment, only grew by 0.9% between 2010 and 2014, It is difficult to sustain retirement pensions where new registrations are 35% more expensive than withdrawals (average pension of 1,310.1 euros per month compared to 966.70 euros for pensioners who leave due to death).
In conclusion, the forthcoming changes will try to contain spending, and it is likely that the Social Security's revenue via taxes will be increased. We will see if these changes produce the drawbacks that the last reforms have already produced.
If you want to be able to get this information, our Department of Savings and Investment will be delighted to help you. We have the best savings products that insurance companies can offer.
