IS THE CURRENT PUBLIC PENSION SYSTEM SUSTAINABLE?

IS THE CURRENT PUBLIC PENSION SYSTEM SUSTAINABLE?

Many wondered if, as things stand, we will charge a State pension when us retirement, at least one decent pension that allows us, at least, survive without having to rely on others. But seeing that many retirees of today who have only their pension see and want them to make ends meet, the expectations are not very good, the truth.

If to this we add the opinion of the experts, the thing is to get to shake. In fact, Pilar González de Frutos, President of the employer's insurance Unespa, recently declared to the Cadena Cope that the current pension system is "unsustainable" with existing pension levels. These words did not make if not support statements made previously by the Governor of the Bank of Spain, Luis María Linde. Unespa President also recalled that the current pension is equivalent to 80% of the average wage. He also said that with the demographic trend of Spain "it won't be possible to keep it at that level".

According to Gonzalez of fruit, it is necessary to "sincere exercise of pedagogy with the citizens provided a serene debate on the future". Although it always is with what comfort, since, he said, pensions are contributors and "they will not disappear because they are a constitutional right, but they will be less".

Unespa President believes that the best solution to this is to combine the private with the public pension system, and reminds that there are examples in which found that the growth of private savings brings an improvement in public systems.

SAVING FOR RETIREMENT

But UNESPA President isn't the only one who sees black the future of public pensions. In fact, 71% of Spaniards believed that his generation will not have a public pension. And most think that if you receive it, it will not be enough. These are the Spanish study data before saving and retirement, Aviva Institute.

And you don't say anything if you're autonomous. According to a study from the University of Barcelona and VidaCaixa on SMEs and freelancers, that alert of the vulnerability of this group before retirement, more than 85% of the self-employed are listed by the minimum basis, implying that his pension not surpass the 635 euros per month, which is almost half that of the average salaried worker pension that is from 1.155 euros.

Faced with this panorama, the best choice is ignore Gonzales of fruits and start thinking about saving for retirement, because if we now believe that we we drowned, what awaits us in the future seems to be worse. So, if the flies, the better to schedule.

RETIREMENT SAVINGS OPTIONS

Facing retirement, there are various savings options, such as private pension plans or life savings insurance. Although there are more options.

When choosing among the different possibilities you have to take into account matters such as your ability to saving, taxation of the chosen mode of savings, and how not, the warranty of the entity that you hire.