On the discussion about pensions

Abstract

It has been opened the public discussion about the reform of the Spanish Social Security system. At the heart of the debates, the funding problems of the contributory pensions arise from the progressive insufficiency of contributions. Otherwise, the last legislative reforms have brought new cuts in benefits, have built a sustainability factor and have modified the revaluation rules. This paper contains a reflection about how to increase the incomes through contributions and how to improve the financial health of the system. In addition it is posed the question of the waste necessary to sustain the pensions at similar quantities than the current level. Moreover it is developed a critical analysis about the last reforms that have affected with more intensity to the lower pensions. Lastly some improvement measures that could be proposed in a time of legal changes are suggested.