“The principle of agreement on the pension reform puts the sustainability of the system at risk”
The presentation ceremony was also attended by the president of Cajamar, Eduardo Baamonde; the president of Fedea, Ángel de la Fuente; and the professor of Economics at the Pompeu Fabra University, Sergi Jiménez; together with the director of the collection, Manuel Gutiérrez.
The future of pensions is an issue that is fully topical, since the Government and social agents are in the process of negotiating the reform of the system in our country, and everything seems to indicate that next week they will reach a agreement. José Ignacio Conde-Ruiz, has assured that “The agreement that seems to be reached by the Government and the social agents is the easiest part of the reform, since it guarantees sufficiency, that they do not lose purchasing power, but it remains to find a mechanism that compensates for this measure, which will mean an increase in the structural deficit between 3 and 5 points of GDP, and puts sustainability at risk ”.
Conde-Ruiz has asked for a great political pact for pensions, since it is not possible to face a challenge of this magnitude without an agreement of this nature.
For his part, Ángel de la Fuente explained that, “If we allow the automatic balancing mechanisms of the 2013 reform to be eliminated Without compensatory measures, which is something we seem to be heading towards, we would incur a very significant increase in future pension spending that would put a lot of pressure on public spending with a very high deficit ”.
In addition, De la Fuente has predicted that “in the next 30 years we will have to face two major challenges: not only spending on pensions, but also spending on healthcare and dependency.” Therefore, he has proposed that the reform should incorporate cost containment measures via current and future pensions, and increase income not only from assets but from society as a whole.
Through articles by 22 expert authors on this subject, structured in four thematic blocks, the volume analyzes the main questions about the pension system and its future viability.
The first delves into demographic issues, where the main dynamics and trends are described, as well as their causes and repercussions at the economic and social level: fall in the birth rate, immigration and aging. The second block deals with the current situation of the pension system and provides ideas on some possible solutions to the current deficit and the risks that loom over it, derived from demographic trends. The third is dedicated to analyzing and drawing valid conclusions for our country based on international experience, particularly that of Sweden.
Finally, in the last block, questions related to new developments and reform strategies are raised, including the effects of the digital revolution and new forms of employment, the concept of notional accounts, financial solutions or active retirement.
Conde-Ruiz has summarized some of the authors’ proposals such as the possibility of undertaking reforms in the widow’s pension; the modification of the current institutional design of the self-employed pension system, since it is not the most effective to favor the voluntary use of the public pension system for saving in the retirement stage, and the use of notional accounts.
The professor of Economics at Pompeu Fabra University, Sergi Jiménez, has proposed improving the application of active retirement in Spain. To this end, it indicates the convenience of merging into a single figure of early and active retirement; pension compatible with work at all ages, without penalty after normal retirement age; not be restricted to any worker with a minimum of years of contributions from the early retirement age; abolition of partial retirement; possibility of continuing in the same part-time job (training substitutes); treatment for contribution purposes the same as asset work; elimination of obstacles to hiring; recalculation of the pension based on the new contributions; Possibility of delayed retirement with a fairer award than the current one, possibly double that announced by the Government.