The 'Spain Better' Foundation proposes a pension reform to reduce future pensions by an average of 12% for individuals under 50 in order to ensure the sustainability of the pension system.
The 'Spain Better' Foundation, led by Miriam González, has put forth a proposal to the Spanish Parliament aimed at addressing the ongoing issue of pension system sustainability, which remains unresolved despite being off the political agenda. The foundation's plan suggests a gradual adjustment of pensions that would lead to savings amounting to 2% of Spain's Gross Domestic Product, translating to over 30 billion euros annually, primarily by reducing future pensions for those under 50 by approximately 12% on average.
The proposal, which has been formulated by economist José Miguel Moreno, asserts that while younger individuals would receive lower pensions in relative terms, the structural changes would provide greater guarantees for the overall sustainability of the system. The foundation argues that this new design is intended to create a more functional and equitable distribution system, allowing for long-term protection of pensions while alleviating future financial burdens.
By calling for this reform, the 'Spain Better' Foundation aims to initiate a dialogue among political leaders regarding the urgent need for pension system reforms. The anticipated outcome is not only to safeguard the pension system, but also to mobilize political action before the situation potentially worsens, highlighting the growing challenges faced by Spain's social welfare structures as demographic changes continue to influence the financial viability of pensions.
