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 with the sustainability of the Social Security pension system (annual losses from its Reserve Fund have reached €12 billion).
Data on savings and pensions in Spain
The increase in life expectancy is leading to a situation where, in the relatively near future, more people will be retired than of working age. This puts our welfare state at risk.
The Aviva Institute has carried out a study on the future outlook for Spanish people's pensions (see link below). The results are quite shocking:
- on 71% of Spaniards believe that their generation will not have a state pension retirement pension and, in the event that they receive it,
- a 84% considers that it will not be enough. to cover minimum costs. 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 European level, is lower, their awareness of private savings is much higher. In Spain, on the other hand, we have always been confident that our pensions 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 and 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 we should follow:
- Constancy: If you just “try” to save every month, it will be difficult to succeed. Try to force yourself to save by opening a product so that every month you get a small charge on your account.
- Adjust your spending: 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 target in a given period of time: 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 on the best possible product, contact us. We will help you to achieve it, and also how to take advantage of the tax benefits available at the moment.
