February 6, 2023

Taylor Daily Press

Complete News World

Social Security in Spain closed 2022 at 2.4 participants per retiree

MADRID – The latest annual figures from Spain’s Social Security show that the number of participants in social security premiums has risen to 2.39 per retiree. This is the highest number in the past decade. The same data also shows that the average age of the majority of shareholders and the aging of the population will jeopardize this balance in the coming years.

According to Social Security data, the number in 2022 was the highest since 2011, when there were 2.47 subscribers for every retiree. Looking only at active shareholders, those who already have a job, the ratio is 2.24 employees per retiree, the highest ratio since 2009.

This amount Shareholders and beneficiaries However, the pension is not guaranteed in the medium and long term, because 33.4% of the active population is between the ages of 50 and 64. This means that about 7.5 million workers will retire in the next 17 years. According to forecasts by the Independent Authority for Fiscal Responsibility (AIReF), the retirement of this generation will increase the number of retirees in Spain to approximately 16 million ‘pensioners’ by 2050.

According to AIReF, Spain will have a workforce of 30 million people in 2050, a figure that has been reduced by the Spanish Statistical Office (INE) to 28 million people in the labor force. This means that in 2025 there will be less than 2 contributors per retiree, to be exact 1.87 according to AIReF and 1.75 according to INE. The Spanish central bank expects there will be two shareholders for every retiree in 2050, compared to the three people the Bank of Spain holds now.

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In addition, more people who are born in Spain die and the country has achieved a surplus in deaths since 2017, with a difference of 113,023 people in 2022. The number of retirees in Spain will increase in the coming years, while retirees will also live longer and therefore receive Longer pension.