Spending on Spanish pensions set to spike in next three decades, government report claims

THE cost of pensions, the health system and primary care will jump in the next three decades as Spain’s population continues to age, a government report has claimed.

The Economy Ministry’s Stability Plan for 2019 to 2021 said spending on services for the elderly would equal 27.1 per cent of economic output (GDP) by 2050. That is three points higher than the current figure.

The report said pensions would drive the increase in costs as the so-called baby boomer generation, those born between 1946 and 1964, begin to retire.

That generation saw a spike in its birth rate which has since declined, meaning there will be fewer taxpaying workers to support a growing number of pensioners.

The report estimates about €300 billion will be spent on pensions by 2050, up from €140 billion in the most recent Spanish budget.

Migrant labour will be needed to make up for Spain’s declining birth rate and the emigration of native workers, the report stated.

It comes as National Institute of Statistics figures showed Spain’s birth rate during the first half of last year was the lowest since 1941 at 179,794.

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Written by

Joe Gerrard

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