Pepped-up pensions beckon for late retirees
8 November 2007, MADRID - The government is offering incentives to workers to retire later as part of efforts to shore up the Spanish pension system in the face of an increasingly ageing population.
8 November 2007
MADRID - The government is offering incentives to workers to retire later as part of efforts to shore up the Spanish pension system in the face of an increasingly ageing population.
Labor Minister Jesús Caldera said yesterday he expects approval soon of the new law offering employees a 3-percent increase in the state pension they receive for every year they work after the legal retirement age of 65 up to a maximum of five years.
The government has ruled out following the path of countries such as Germany in raising the retirement age.
Caldera said the new measures would ensure "good future prospects for the maintenance" of the state pension system.
Spaniards' life expectancy has increased by two years over the last decade and has surpassed 80 for the first time. Women can expect to live around six years more than men, with life expectancy among the female population at 83.48 years as of 2005 compared to 76.96 years for men.
At the same time, Spain has one of the lowest birth rates in the world. This has been only partly offset by an influx of some 4 million immigrant workers in the past few years.
The IMF estimates that Spain will have to work out 8.5 percent of its GDP by 2050 in the form of age-related public spending.
[Copyright EL PAÍS, SL. 2007]
Subject: Spanish news