The state pension system is one of the most frequently discussed topics by politicians and non-politicians. More precisely, its sustainability, especially now that the “baby boom” workers are starting to retire, that is, the largest population in Spain. Will the pension fund last for all generations? The elderly population over 55 trusts state pensions because they 24% have a private pension plan.

This is one of the results of the IV Fundación Mapfre Older Consumer Barometer. One of the conclusions drawn by the barometer’s authors is that this population has great confidence in the current pension system because it rejects the possibility of receiving extraordinary income such as a pension plan. It must be taken into account that this segment of the population consists of 16 million people, so you can see a large age difference. So, The youngest seniors double their investments in retirement plans compared to the oldest.

That is, only 15% of people age 71 and older have a retirement plan. But if you move down to lower cohorts, that percentage increases. Actually, 34% of the population aged 60 to 65 have a pension plan. Iñaki Ortega, advisor to the Mapfre Foundation’s Ageingnomics research center, explains that the younger people are, the more they choose these products.

Confidence in the pension system is manifested, according to the barometer, in the fact that only 19% of this population want to extend their working life (a percentage that has increased from 15% in 2022). With arrears rates so low, a key way to ease the burden of the pension system, Juan Fernandez Palacios, director of the Agenomics Research Centre, believes Spain does not have an adequate structure to ease the transition from working life to retirement. According to the expert, the partial, active and flexible retirement formulas have restrictive requirements that do not make it easier for older people to benefit from these measures. To this we must add that according to some of these formulas, the pension is not always collected in full.

In addition, most do not want to extend their working lives because they know that they will have an income thanks to state pensions, which will provide them with the income they need to maintain their current standard of living, since despite constant warnings about the lack of resources, pensions continue to be collected and continue to increase. In fact, they have risen in 2022 based on the Consumer Price Index and are expected to rise 3.8% this year. In Spain, only 12% of active people aged 65 to 74 resort to partial retirement, in Sweden – 33%.

Savings and expenses

Beyond retirement, the report, based on data collected in 2023, revealed changes in the consumer behavior of older Spaniards and confirmed several trends, including that they maintain a strong economic position and that the majority have at least house income. , home ownership and the ability to help the environment.

They also show a “certain pessimism” about rising prices and its impact on spending and saving. In this sense, 94.5% of pensioners said they often noticed price increasesthe result of basket case inflation, and six in ten admit that current house and energy prices are putting their quality of life at risk.

Older people are pessimistic about the country’s economic future, although they are optimistic about their own. Although half of the population over 55 years of age is confident in their economic situation, this percentage declines in the younger senior groups (55 to 65 years old) and among those who are still active.

Besides48.9% can only save 10% or less., and 22% do it between 11% and 30%. In this sense, the percentage of those who manage to save at the end of the month increased by 6% compared to 2022, increasing from 43% to 49%. Over the past three years, this figure has decreased from 56% in 2020 to 48% in 2021 and 43% in 2022.

By 2024 Housing, fuel and food costs are expected to increase.and reductions in restaurants, leisure, culture, clothing, footwear, appliances and household items.

58% believe that their economic situation will not worsen in the future, with greater optimism in this regard observed throughout 2023. Eight in ten older Spaniards believe they cannot spend less on healthcare (85%) or housing (82%) without compromising their quality of life. In contrast, more than 25% believe they can do this in restaurants, leisure and culture, technology, food and non-alcoholic beverages.