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Delaying retirement age -- least prejudicial solution
Date:9/7/2011

The welfare of pensioners will be negatively affected as a result of the reforms that the Government of Spain have just implemented in order to balance their budget. However, the raising of retirement age is the least prejudicial measure. This is the view of Ms Patricia Peinado, who has analysed the effects that these changes will have on the retired population. She concluded that the worst scenario of these effects would be if the reforms were solely limited to extending the number of years computed to calculate their pensions. Delaying retirement age until later and increasing the number of years of contributions is the best combination for both financial and welfare balance, given the measures proposed. Her thesis, defended at the University of the Basque Country (UPV/EHU), is entitled Pension system's reform in Spain: a dynamic analysis of the effects on welfare.

Ms Peinado's work is based in three sub-studies. The first makes reference to the overall community of pensioners and, under the title, A dynamic analysis of the effects on pensioners' welfare of social security reforms, was published in the Journal of Pension Economics and Finance, the most important journal in matters of pensions. The second essay focused on gender differences and the third, on widowed pensioners.

Also future pensioners

The researcher considered the dynamism of the effects of the reforms. She thus analysed the trends in social welfare over time: she also studied the impact that delaying reforms could have on future generations of pensioners.

This line of research is reflected in the study on the overall numbers of retired persons (first study). In this Ms Peinado analysed what would happen if the implementation of these reforms were to be delayed to a point where there was not sufficient funding to pay all pensions. The researcher concluded that this decision would protect current pensioners, but involve greatest pen
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Contact: Amaia Portugal
a.portugal@elhuyar.com
34-943-363-040
Elhuyar Fundazioa
Source:Eurekalert

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