{"id":15558,"date":"2016-07-06T13:00:24","date_gmt":"2016-07-06T11:00:24","guid":{"rendered":"https:\/\/pibgroupiberia.com\/?p=3114"},"modified":"2025-06-02T13:03:25","modified_gmt":"2025-06-02T11:03:25","slug":"the-drama-of-social-security-and-our-future-pensions","status":"publish","type":"post","link":"https:\/\/pibgroupiberia.com\/en\/el-drama-de-la-seguridad-social-y-nuestras-futuras-pensiones\/","title":{"rendered":"The drama of Social Security and our future pensions"},"content":{"rendered":"<p>Year after year we have seen successive provisions of the<strong> Social Security Reserve Fund<\/strong> (the so-called <em><strong>\u201cPension piggy banks\u201d<\/strong><\/em>). A few days ago, a new withdrawal was made to pay the July bonus. The main problem is that it was the largest drawdown since the creation of this Fund: <strong>8.7 billion<\/strong>, leaving the same <em>\u201cshivering\u201d.\u201d<\/em>. Let's look at it in figures.<\/p>\n<h2>Current situation of Social Security<\/h2>\n<p>We have already been reporting on this situation in <em>previous articles\u00a0<\/em>we have published, for example:<\/p>\n<ul>\n<li>In which we disagreed with the reforms: we described how the <a href=\"\/en\/blog\/the-uninformed-lie-of-pensions-and-social-security\/\">spanish pension system<\/a> and what kind of reforms had been carried out recently; or<\/li>\n<li>The one in which we reflected young people's concerns about their pensions: we gave some survey data, and offered advice on <a href=\"\/en\/blog\/retirement-pension-worries-soar-among-young-people-three-key-ways-to-combat-it-and-save\/\">how to start building up personal savings<\/a>.<\/li>\n<\/ul>\n<p>Indeed, the situation is not at all rosy for current workers and future pensioners. This graph is very illustrative of the provisions made and of the <strong>remaining balance of the Reserve Fund<\/strong>, that lead one to believe that <strong>soon to be sold out<\/strong>. The problem is what to do when that happens:<\/p>\n<h2><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-27626\" src=\"\/wp-content\/uploads\/2016\/07\/fondo-de-reserva.png\" alt=\"\" width=\"951\" height=\"682\" \/>The worrying figures and prospects<\/h2>\n<p>As we can see, only 25,716 million euros remain.<strong>,<\/strong> 66,815 million accumulated years ago. 41,639 million has been reduced, leaving just <strong>37% compared to the 2011 peak.<\/strong><\/p>\n<p><em>(Update: at the beginning of 2018, the remaining balance in the reserve fund is about \u20ac8 billion).<\/em><\/p>\n<p>The problem is compounded by the fact that in July last year only 3.75 billion was used and this year more than double...<\/p>\n<h3>Retirement of the baby-boom generation<\/h3>\n<p>The greatest nervousness comes from the\u00a0<strong>generation yet to reach (or is reaching) retirement<\/strong>.<\/p>\n<blockquote><p>That generation of fathers and mothers who were born in the 1950s (from the \u201c50s\" to the \"50s\") is a generation of parents who were born in the 1950s.\u201c<em>baby-boom<\/em>\u201c), and who have had high salaries. It is therefore expected that their pension will also correspond to that standard of living.<\/p><\/blockquote>\n<p>Ultimately, what this means is an increase in the cost of the total pension bill.<\/p>\n<h3>Quotes from millennials (young people)<\/h3>\n<p>At the same time, who should replace this mass of the population are\u00a0<strong>25-35 year olds<\/strong>. Unfortunately, many of them are unemployed or in precarious, low-paid jobs.<\/p>\n<p>Their contributions also do not match the needs of the system to compensate for the payments to be made, and this is creating widespread nervousness about the future of our pensions.<\/p>\n<h2>Solutions to improve pensions<\/h2>\n<p>The only way to turn this situation around is to <strong>generating more employment<\/strong>. However, the jobs that are being created recently are precarious, as the figures show: Social Security enrolment is increasing by 2.81 PTE3T per year, while Social Security contributions are increasing by only 1.91 PTE3T.<\/p>\n<p>There are formulas being proposed to reverse this situation, such as: a solidarity tax, as proposed by the PSOE, or eliminating bonuses for companies and the self-employed in Social Security. All of these measures are frowned upon by the public.<\/p>\n<p>No solution seems easy, and the Spaniards should<strong> planning our retirement<\/strong>, in order to <strong>generate savings <\/strong>that can compensate for the future decrease in public pensions, which is a reality we will face in a few years.<\/p>\n<p>Our <strong>Savings and Investment Department<\/strong> can help you in this process, and advise you on which are the most suitable products to not only get an interesting balance to complement the public pension, but also to do it in a way that fiscally obtains a series of advantages. If this is what you want, contact us and choose the right product for you. <a href=\"https:\/\/pibgroupiberia.com\/en\/location\/zaragoza\/savings-plan\/\">best savings product<\/a> for you.<\/p>","protected":false},"excerpt":{"rendered":"<p>The difficult times for the social security system are gradually taking their toll on our retirement pensions. Let's look at the exact figures of the problem<\/p>","protected":false},"author":14,"featured_media":13832,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[16],"tags":[178],"class_list":["post-15558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-particulares","tag-jubilacion"],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"_links":{"self":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/15558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/comments?post=15558"}],"version-history":[{"count":0,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/15558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media\/13832"}],"wp:attachment":[{"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media?parent=15558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/categories?post=15558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pibgroupiberia.com\/en\/wp-json\/wp\/v2\/tags?post=15558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}