The Minister of Inclusion, Social Security and Migration, Jose Luis Escrivahas assured this Monday that the unstopping of the base and the maximum pension “equivalently” and in a “gradual and smooth” period of about 30 years will contribute, together with the overpayment introduced by the Intergenerational Equity Mechanism (MEI)to “fill” the pension system with income in the 2030s and 2040s, the decades most stressed by the expense that the retirements of the baby boomers will entail.
During his speech at an event organized by the Seres Foundation, Escrivá recalled that the unstopping of the maximum base and the maximum pension is one of the measures to be agreed with the social agents as part of the recommendations of the Toledo Pact and the commitments assumed by Brussels in the framework of Spanish Recovery Plan.
The minister has insisted that the maximum pension in Spain is “relatively low” in the contributory system, since it is around 40,000 euros per year. «Uncovering the maximum base and the maximum pension at the same time, equivalently, and doing it gradually and very smoothly so that it does not have a significant effect on the labor cost of companies, can be done in 30 years, it has the potential that it fills the income in the 30s and 40s (…), although from the point of view of the system, in the very long term, it is neutral because you collect before and then pay larger pensions, “he explained.
The minister pointed out that the spending on pensions is around 12% of the PIB, somewhat below the European average, and has ensured that staying at those levels is “acceptable”. “With all this set of measures we want to more or less stabilize that spending. It will have to be readjusted over time, in the coming years and decades. Our starting point is manageable, but we must take the measures now, with a medium-term vision, and do it gradually to adjust them progressively », she defended.
Write He explained that the tensions in spending forecast for the 2030s and 2040s are due to the retirement of a “very broad” generation, that of the baby boomers, followed by a “narrower” generation. However, this tension in the spending of the pension system disappears after 2048 because the generation of the children of the baby boomers is already of a “similar size”.
Thus, to deal with these tensions in expenses, the MEI has been adopted, which establishes an overcontribution of 0.6% until 2032 and which does not imply “a significant change in the labor costs of companies, but it does generate significant savings” for the Social Security. And along with this, now it is sought to agree with the social agents the progressive unstopping of the base and the maximum pension.