[…] Absent structural reforms, Spain’s pension checks will keep on shrinking. The replacement rate – the percentage of an worker’s income that Social Security will replace – is poised to fall precipitously. Social Security checks will go from replacing 79 percent of a worker’s income in 2013 to 48.6 percent by 2060, according to a European Commission study – a decline of nearly one-third.
To make matters worse, Spain is feeling the chill of the West’s demographic winter. The ratio between workers and retirees likewise decreases over that period. According to Eurostat statistics, Spain has the second-lowest fertility rate in the continent. Yet there is no plan to boost the nation’s birth rate through tax reform or the courageous promotion of pro-life and pro-family values.
Anyone who cares about Spain’s elderly, its youth, or its economic future must advise against policies that force the elderly to rely on the State. A redistributive, government-administrated pension system can only guarantee “very miserable” pensions, or a very miserable economy – or both. […]