Before the end of the year, the government must submit a pension reform plan in line with the commitment made in the Recovery, Transformation and Resilience plan, which is the foundation that allows us to receive Next Generation funds. Undo the negative effects of the pandemic crisis.
Our pension system is pay-as-you-go, so its sustainability is theoretically guaranteed, as the state has an obligation to provide pensioners with sufficient resources to meet their contractual obligations. However, as a recovery in the number of retirees is expected as a result of the Baby Boom of the 1950s and 1970s of the last century, some adjustments seem necessary to avoid the flow devoted to this purpose, which now represents 12%. In no case does it exceed 15% of GDP, as other crucial parts of the welfare state may suffer.
Reforms the government is considering to balance the system more easily are raising the maximum contribution bases (an asymmetrical reform as the highest pensions are capped) and extending the calculation period. Regardless, the important thing is to preserve the principle of preserving the purchasing power of retirees. Currently, 52% of retirees do not even reach the professional minimum wage. Under these circumstances, there will be no acknowledgment of receipt, even to imply that there may be any reversal in the purchase.
Source: Informacion
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