{"id":15092,"date":"2017-07-11T13:00:27","date_gmt":"2017-07-11T11:00:27","guid":{"rendered":"https:\/\/www.joaquinmone.es\/?p=4650"},"modified":"2025-05-23T11:02:09","modified_gmt":"2025-05-23T09:02:09","slug":"the-loss-of-purchasing-power-of-our-pensions-is-already-a-reality","status":"publish","type":"post","link":"https:\/\/dev.pibgroupiberia.com\/en\/blog\/la-perdida-de-poder-adquisitivo-de-nuestras-pensiones-ya-es-una-realidad\/","title":{"rendered":"The loss of purchasing power of our pensions is already a reality."},"content":{"rendered":"

Numerous experts had already anticipated that all the corrective factors introduced in our public pensions would reduce the purchasing power of pensioners. Let's see what they say in concrete terms.<\/p>\n

Recent pension reforms<\/h2>\n

As we have discussed in numerous previous articles, the sustainability of pensions is in question. The permanent deficit of the Social Security system is aggravating a situation that is provoking the depletion of the \u201cPension Piggy Bank\u201d.\u201d<\/a>.<\/p>\n

Faced with this prospect, the government has been introducing new ways of correcting pensions, which basically reduce the amounts to be received by new pensioners:<\/p>\n

    \n
  1. Increase the number of years that influence the calculation of the pension to be received: it will progressively increase from 15 years to the last 25 years of contributions.<\/li>\n
  2. Control the index that revalues pensions annually, leaving 0.25% (previously linked to CPI).<\/li>\n
  3. The retirement age is raised from 65 to 67.<\/li>\n
  4. Establishment of a sustainability factor: this factor, due to the increased longevity of pensioners, controls and reduces the pension, in order to be able to pay it for more years, basically.<\/li>\n<\/ol>\n

    \"Pensions<\/p>\n

    Expert opinions<\/h2>\n

    Recently, the president of Inverco<\/strong>, Angel Martinez-Aldama, on the consensus of economists, that over the next four decades, pension revalorisation will remain at 0.25%<\/strong>. The worst of its consequences is this: the loss of purchasing power.<\/strong><\/p>\n

    The consequences of such a significant reduction in the purchasing power of pensioners are very serious. Especially because the cumulative effect of such a drop in purchasing power over 40 years is enormous.<\/p>\n

    If so many experts are on the same line, we must assess the consequences, and act to correct the effects of all this on our domestic economy.<\/p>\n

    Promoting financial literacy and other proposals<\/h2>\n

    Angel points out the importance of reinforcing information to workers, from the government, so that they can act accordingly (knowing what pension they will be left with).<\/p>\n

    Why? Because of what he himself said: \u201cThe diagnosis is clear. We are going to go from 8 million to 15 million pensioners. The challenge will become more acute in 2022 and 2023 with the retirement of the baby-boom generation\u2018.\u2019<\/em><\/p>\n

    He proposes to carry a 4% of employees' contributions to an individually funded scheme<\/strong>, to cushion the reduction in pensions.<\/p>\n

    It is no trivial matter that the substitution rate<\/strong> (which compares the last salary with the first monthly pension payment), is to be reduced from the current 80% <\/strong>(one of the highest in the OECD)., about 50%<\/strong> in just thirty years.<\/p>\n

    This greater financial culture that the experts talk about would translate into informed decision making. As an Insurance Brokerage in continuous training and with a specific Savings and Investment Department, we must advise you on supplementing public pensions<\/a>. If you want to find out more, please contact us.<\/p>","protected":false},"excerpt":{"rendered":"

    The data are not good: the measures introduced will reduce the purchasing power of our seniors<\/p>","protected":false},"author":14,"featured_media":15093,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[16],"tags":[206],"class_list":["post-15092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-particulares","tag-ppa"],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"_links":{"self":[{"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/15092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/comments?post=15092"}],"version-history":[{"count":0,"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/posts\/15092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media\/15093"}],"wp:attachment":[{"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/media?parent=15092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/categories?post=15092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.pibgroupiberia.com\/en\/wp-json\/wp\/v2\/tags?post=15092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}