Bringing Social Security into the 21st Century

Summary

The structure of the current Spanish pension scheme is essentially the same as when it was set up at the end of the 1960s. In the 50 years that have gone by since its creation, the only changes it has seen have been to its parameters.

Key points

• Key points:
• What does the pension system currently look like? In order to answer this question, we need to examine the pension system from a number of complementary angles so as to get the full picture.
• Between 2008 and now, the social security system fund has deteriorated significantly, dwindling from a surplus of 18 billion to a deficit of 20 billion in just ten years.
• Meanwhile, the Índice de Revalorización de las Pensiones (pensions revaluation index — IRP), which reports on the structural financial health of the system, will be –1.80% by 2020.

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