New research from the Fedea center has raised concerns about the sustainability of Spain’s pension system, with estimates suggesting that adjustments may be necessary to prevent a significant increase in retirement expenses as a percentage of GDP. The analysis questions the accuracy of Brussels’ projections on aging, highlighting potential shortfalls in the system.
According to the report, the pension system will undergo a review next year to ensure its sustainability and prevent an increase in spending on pensions. The Ageing Report prepared by the European Commission will activate correction mechanisms if necessary. However, experts from various universities warn that social security deficits are financed by transfers from the state and that factors such as revaluation of benefits, contribution income growth, and economic cycles will influence the system’s financial stability.
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