I giovani spagnoli dovranno ritardare la pensione fino a 71 anni per ricevere una pensione decente.

The difficulty of achieving long working careers will lead to delayed retirement, according to a study by the Ivie and the BBVA Foundation.

To retire, workers must meet a specific number of contribution years and reach the legal retirement age. These two requirements are not fixed, meaning many workers have to postpone their retirement by a few years in order to accumulate enough contributions or to avoid reductions in their pension. This rule often has to be stretched further for those who entered the labor market late and therefore haven’t had time to build a long enough career by the time they reach retirement age. According to projections from the latest study by the Valencian Institute of Economic Research (Ivie) and the BBVA Foundation for the year 2065, today’s young people who have only managed to contribute for 30 years by then will have to delay their retirement until age 71 in order to receive a pension comparable to their last salary. Those who contribute for 40 years, however, could retire at 65, and those with 35 years of contributions could do so at 68.

“Entering the job market at a later age will make it harder for today’s youth to complete sufficiently long careers and, therefore, they will need to remain in the labor force longer in order to obtain a pension that allows them to maintain their standard of living,” the report emphasizes. It also highlights that the employment rate for individuals aged 16 to 29 stood at 43.2% in 2024 —15 percentage points below the 58.7% recorded in 2007 for the same age group.

The report also points out that recent pension system reforms —which will affect calculations in the near future— will not make it easier for younger workers to retire. These changes include increasing the statutory retirement age to 67 by 2027 for those with less than 38.5 years of contributions, and raising the contribution period required to receive 100% of the pension base to 37 years. Additionally, the number of years used to calculate the pension base will increase until 2044, when it will be based on the best 27 out of the last 29 years.

Using the most recent complete labor market data and applying the future regulatory changes, the study by Ivie and the BBVA Foundation makes projections for 2065 (40 years from now) about how long people will need to work and until what age in order to minimize the replacement rate gap — that is, the difference between one’s pension and last salary (how much of your last paycheck the pension effectively covers). “The shorter the working career, the lower the replacement rate will be — in other words, the pension will be a smaller percentage of the last salary. If we combine this with generally lower starting salaries, it could lead to serious adequacy problems and thus a diminished standard of living both during working life and in retirement,” the report warns.

The only way for young people to avoid having to delay retirement until 71, the document stresses, is by having sufficient accumulated savings (such as private pensions or inheritances). Otherwise, “under the current legislation projected for 2065, a gross replacement rate of 90% —equivalent to a net rate of about 100%, meaning the same standard of living— will only be achieved with 40 or more years of contributions and a retirement age of 65,” it states.

“To achieve the same replacement rate with a 35-year career, retirement must be postponed to age 68, and to age 71 with only 30 years of contributions,” it adds.

Greater exposure

The outlook could become even worse for future retirees if, as the document warns, certain reforms commonly discussed by experts are implemented. These include extending the calculation period for the pension base to the last 35 years; raising the required contributions for full pension entitlement from 37 years (set for 2027) to 40 years; and linking the initial pension amount to life expectancy through a sustainability factor, which is scheduled to be introduced starting in 2044.

work till 71 just to enjoy a few quiet years? Hope future generations get a better deal

Old people man.. They had literally all advantages with saving, buying property, and investing, and we still need to pay for their retirement with our tax money. Awesome and now we get to retire at 71+.

Sadly with demographics going the way they are at the moment, I wouldn’t be hopeful that I will have a liveable pension at all when I reached retirement age. My partner and I are lucky that we make relatively good wages so we have this in mind and want to start chipping away at private pensions, investments funds and/or an additional property to rent, but I am conscious that we are in a better-than-average situation and most people will struggle to even have their own house when they get old.

It’s a very scary situation, I hope it doesn’t come to pass and we’re just being pessimistic, but so far the news is looking worse and worse for young people today.

plot twist: there will be no retirement at all within a decade

Bro, in Italy their talking about us having no pension at all, there certainly is worse.

This is commonplace in Denmark. If we live longer we need to contribute longer. There is some unfairness with regards to the phasing in of course.

EU just needs to allow an american style 401k and roth ira

Soon to be 74 here. Damn.

Or alternatively the state could start aggressively regulating how many houses people/corporations can own and limit how profitable real estate can be as an investment. Let long term living costs fall and there will be more money available for retirement. Go the Singapore route of building tons of properties, giving people super low cost government backed mortgages and strictly limiting investment real estate to luxury units.

The younger generations need to have their own homes if they want to see comfortable retirements, it’s irresponsible for them to be asked to subsidize the retirements of their elders and private equity groups as perpetual renters.

I will not have a pension, this is how this shit works here.

Ehhh what else should politicians do when every generation decreasing by 50%? Spain has a horrendous TFR.

I can relate. In Denmark they are working to increase retirement age to 74.

The politicians can say what they want, if that is how things are going to be, then I’m saving up to pay my own retirement at age 65. Fuck em.

People with vested interests in privatising the pension system think that horrible things will happen in the coming decades if we keep the public system. More news at 10.

And when they all gonna be 60 they increase retirement age to 80.

So I have to work until 71 but all the immigrants coming here don’t work harass the population are paid and live like kings fuck this country 

I’ll just retire early and then kill myself when I hit 70

If they skip siesta, they can retire at 67. /s

Time to decouple pensions from taxes paid by individuals. It should be funded by land value tax. If we cannot brust housing bubble let’s use it somehow.

Vida: Hola, trabajo, adiós.
Life: Hello, work, goodbye.

I love our “civilization”, how we endure and normalize the oppression of the rich.