Tax Advisory Spain: The Government introduces novelties in the field of pensions before the COVID-19

The Minister of Inclusion, Social Security and Migration is committed to discouraging early retirement

On September 9, the Minister of Inclusion, Social Security and Migration gave his opinion on the proposal to limit and discourage early retirement. The objectives pursued with this procedure are:

  • To extend the actual age of retirement.
  • To make less use of early retirements.
  • Make it easier for anyone to work beyond their working life.

On the other hand, José Luis Escrivá has also mentioned his forecast of the Spanish deficit. For the Ministry, the deficit level of the pre-pandemic accounts will not be recovered until 2023.

However, the Minister forecasts that the deficit in Social Security for this year will be as high as 2% of the GDP. In addition, Escrivá states that Moncloa will make an extraordinary contribution to Social Security of 14,500 million Euros.

As far as pensions are concerned, the Minister explained that "every time the data comes out, they have an enormous media impact and this generates a problem of uncertainty that the system is not sustainable, despite the fact that we have even less spending than the surrounding countries".

Finally, the Minister of Inclusion, Social Security and Migration has contributed to a series of reforms in the pension system. Among those mentioned by the Minister at the press conference, the following stand out:

  • Bringing the effective retirement age closer to the legal retirement age.
  • Consolidating the separation of sources and restoring financial balance.
  • The integration and convergence of regimes.
  • The importance of the fact that the financing of employment incentives cannot be covered by social contributions.
  • A complementary social welfare model based on collective bargaining.

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Etiquetas: Déficit, COVID-19, tax advisor Spain, tax advisor Madrid, Government of Spain, Retirement