The Spanish public pension systemThe quest for financial sustainability and equity

  1. Pablo Hernández de Cos 1
  2. Roberto Ramo 1
  3. Juan Francisco Jimeno 1
  1. 1 Banco de España
    info

    Banco de España

    Madrid, España

    ROR https://ror.org/02f26yq04

Journal:
Revista de economía aplicada

ISSN: 1133-455X

Year of publication: 2018

Volume: 26

Issue: 76

Pages: 133-156

Type: Article

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Abstract

As in many developed countries, population ageing is stressing the finances of the Spanish public pension system. Many studies have documented the sources of the increase in pension expenditures and the limitations of revenues from social security contributions to meet such an increase. Looking into the future, dependency ratios are expected to rise further, while, in the absence of additional changes to the system's sources of revenue, pension replacement rates will decline significantly from the current levels. In this context, this paper aims to contribute to the debate on the situation of the Spanish pension system through an analysis of its recent evolution and up-to-date forwardlooking projections that include the impact of the latest reforms. Finally, we also analyse alternative reforms that are needed to restore financial sustainability and improve equity, both within and across generations.

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