How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Daily Brief - Friday 21 October 2014
- Mr Grumpy v Angeles Duran
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Rajoy makes pension-reform promise to Brussels
The Spanish government’s budget program for 2013-2014, which it handed in to Brussels last Friday, includes legal reforms that will affect the retirement age and speed up the date for implementing changes, now set for 2027.
The plan includes restricting access to early and partial retirement, and faster implementation of the new retirement age as well as different parameters for calculating pensions.
Pensions are currently the biggest expense on the Spanish budget. This year, the government will pay out €120 billion, representing around a quarter of all spending and over 10% of the nation’s GDP.
And these figures will only go up in future, to an estimated 15% of GDP, as baby boomers born in the 1960s reach their retirement age. This fact already led the previous Socialist government of José Luis Rodríguez Zapatero, a year and a half ago, to initiate a reform process that raised the retirement age from 65 to 67. The move created great social rejection and the conservative Catalan nationalists of CiU were the only political group in parliament to support it. The Popular Party (PP), now in power, voted against it at the time.
PP spokespeople then argued that a reform of the pension system was “inopportune, disoriented, imprecise and incoherent;” they also criticized the Socialist government for modifying such an important issue in such a “rushed way” and forecast that the system would be “more unfair” because it would lead to financial losses for workers even if they put in more years of work.
Now, the PP not only accepts those Socialist reforms, but is promising European authorities a new turn of the screw to ensure Spanish workers retire even later.
The effective age of retirement in Spain - the average age at which an individual leaves the workforce for good - is around 2 years lower than the legal age. When Zapatero began his reform, it was 63.5 years (one of the highest in Europe).
Latest News & Stories
- 50% of Spain's workers earn under EU1,000 per month
- Spanish Attorney General Files Suit against Catalan President
- UK-Spain dispute over Gibraltar threatens European skies reform
- PM calls on opposition to “get serious” and detail plans for federal state
- Spain 2015 Michelin Restuarants Guide Released
- Gibraltar airs EU advice to Spain over border delays
- Spain finalizes direct flights with Azerbaijan for 2015
- Israel vexed at Spain’s move to recognise Palestinian state
- Orange reaches 2 million 4G customers in Spain
- Spain arrests Moroccan on terrorism charges
- Applying for your Spanish prescription charge reimbursement
- Can I claim UK benefits if I am widowed in Spain ?
- Claiming a Spanish or UK Pension in Spain
- Claiming Spanish Benefits in Spain