The pension should represent at least 70% of final salary to maintain the standard of living, according to the OECD. In Spain, the substitution rate verges on 74%, one of the highest, although it has declined in recent years and will continue in the future as you go applying the pension reform approved by the PP in 2013. in fact, the European Commission has indicated that the replacement rate of pensions on the last salary can lose about 30 percentage points between 2013 and 2060 -pasaría of 79% was in 2013 to 48.6% – by the effect of sustainability factor and the new formula for pension increases (the initial amount of pension depending on the increase in life expectancy is reduced).
a study by the Aviva insurance and consulting Deloitte quantified at 191,500 million euros, which would have to save every year 25 million Spaniards who will retire between 2017 and 2057 to ensure a standard of living similar to that they had when they worked. This figure has grown by 12% in the last six years, twice the EU average which stands at 6%, “making Spain one of the European countries where more has increased the gap in pension” , according to the study.
therefore, each Spanish, on average, would have to save an average of 7,700 euros per year according to figures from the report. Of course young people need to make less effort saver since they have more time. Aviva quantifies this effort by 2,700 per year for 20 year olds, at 6,500 euros for those who are 50 years and 31,200 euros a year for over 60 years.
The mismatch of pensions with the level of pre-retirement life reaches two billion euros in Europe, 6% more than in 2010. Germany, Britain, France and Poland have managed to reduce this gap, while it has increased in Spain, Italy, Ireland and Lithuania .
the causes for the increase of mismatch are mainly due to an increase in life expectancy, to pensions have decreased or increased less than wages, and interest rates at historic lows. Although Spain is not the country where more money would have to save future pensioners, it is the one with the largest gap in percentage of GDP: 17% of GDP is the saving effort required to cover the gap in our country against 15% in Germany, 11% in France and 6% in Italy.