The Spanish government aims to alleviate the burden in the social security budget with the aging population and increasing number of retirees. With the pressure of the European Commission, structural changes in the pension system have become inevitable.
The new arrangement covers individuals who are 55 years of age, still actively working and above certain income levels.
In which case will there be a deduction?
Those who demand early retirement without completing full premium day, those who receive both salary and pension at the same time, and situations that create an overload to the public system.
How long will it be cut?
According to reports, a deduction of up to 20 %is envisaged.
There are many factors in the need for arrangements. The retirement period takes longer due to the average life expectancy in the country. The number of retirees is increasing rapidly compared to the number of active employees. The share of pensions in GDP has reached unsustainable levels. The European Union also pressures reform to discipline public financing.
