Few Spaniards continue working after age 65

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The government’s incentive plan for working past retirement age draws few Spanish employees.

6 October 2008

MADRID -- Few workers are interested in working after age 65, the official retirement age. In January the Spanish government offered a 2 percent increase in pension benefits for each additional year worked, but so far only 6,321 people have accepted for the deal.
However, twice as many workers are postponing retirement in 2008 than in 2007, before the government incentive began.
The plan is part of an effort by European countries to minimise the impact of aging populations on public spending by encouraging people to work longer. So far, Spain proposed a 2 percent increase - or 3 percent for workers who contributed to Social Security for more than 40 years - for anyone who decides to postpone retirement.

Meagre prospect
Currently, the 65-and-over worker community includes 115,000 individuals, or less than 1 percent of all contributors to the Social Security system.
The plan is considered best for workers who will retire on a small pension and are eager to increase the amount by working beyond the age of 65. It may also be attractive to well-paid workers because the government removed the upper limit on pension benefits, which was EUR 2,384 a month.

[El Pais / Lucia Abellan / Expatica]

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