In order to “necessarily” reform Spain’s insurance and savings system, Khaiber Diaz Khoenz, a Spanish economist, proposed increasing the retirement age to 74 years old, increasing social insurance contributions, and halving the pension salary.
According to Europa. Spanish Press, the economist at the Faculty of Graduate Studies for Business Administration emphasised that the Spanish pension system has a number of issues, including “generosity” in granting pensions in exchange for the lack of subscribers’ contributions and the agreement based on the calculation of pensions between generations lacking credibility.
Diaz recommended that among other potential remedies, citizens should save more for their retirement. According to him, a system based on redistribution needs to be changed to a hybrid system, in which the state bears the smaller burden and people bear the greater burden by conserving money in accordance with their own needs.
An economist from Spain advises decreasing the pension by 50% and boosting the retirement age to 74 years.
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