In the European Union countries they are trying to provide financially for the older generation. In the Kingdom of Spain, a mechanism has been developed in the form of a pension replacement coefficient, which serves as the basis and regulator for the assignment of pension benefits based on average earnings upon reaching age.
Pensions in Spain are calculated at high percentages (50-100%) in comparison with other countries that are part of the European Allies. Statistics show that Spanish pensioners generally receive 80% of their previous average salary.
A group of pensioners walks along the sea coast.
Classification of pension provision by type
The state government has established different requirements for people applying for social security. A pension in Spain can be granted:
- Standard based on length of service and age, payments are made by social insurance from the state fund, which is formed by transfers of able-bodied, working citizens. The contribution amount is 6.35% of earnings.
- For disability with a group approved by a medical institution due to previous injuries or diseases and for disabled people born with a pathology
- For children and families who have lost their breadwinner.
Life doesn't stop in retirement.
Private pension funds also accept contributions. The money is returned to the elderly in the form of additional payments to social benefits when they reach retirement age.
Types and size of pensions
There are three types of pension in Spain:
- usual, depending on the length of work experience. It is paid from the state social insurance fund.
- special, designed to support those persons who do not have or have insufficient pension experience.
- private pensions paid by commercial pension funds.
The average pension in Spain is not very high compared to pensions paid in other EU countries, but it is quite decent. So, for example, the minimum size of a regular pension is 636 euros, and the maximum is 2567. As for the average size of the pension, in 2021 it was 908 euros.
On average, the pension payment is 80% of the former salary. Even in France this figure is 80%. Only Greece has achieved great success, where the percentage of pension payments from wages is 95%.
Typically, pension payments are made monthly, with another additional pension also paid twice a year, namely in June and December. If we talk about the formula for calculating the amount of the pension, then in Spain it depends on the amount of income from which the pension was paid to the Social Security Fund, as well as on the length of service. Usually, when calculating, the average earnings for the last 15 years are taken.
If we talk about the most wealthy, retired representatives of certain professions, then they include:
- specialists in the field of it.
- business owners.
- bankers and economists.
Men pensioners in Spain receive a larger pension than women, while the size of payments also varies by region. So, for example, in the Basque Country it is 1114 euros, and in Madrid – 1064. The poorest can be considered pensioners in Galicia with their income of 759 euros.
It is also worth noting that the amount of pension payments directly depends on the length of service. So, for example, if a person has worked for more than fifteen years, he can count on half his salary. Further, its size increases depending on the length of service and the amount of interest. As for disabled people and people in need of constant assistance, they can count on an amount of fifty percent of the minimum pension.
Personal pension fund
By old age, you can accumulate a substantial additional amount under an additional pension agreement - Plan de Pension.
Program participants make monthly fixed contributions of 50-100 euros to special funds managed by banks. Savings in different shares are invested in programs with fixed and variable income. The second option is more profitable, but riskier. Choosing a reliable fund is not easy - you need to compare profitability, commissions and other factors.
The accumulated money is inherited, it can be received ahead of schedule in case of a serious illness, work injury, or long-term unemployment.
This program is fully stimulated by the state - savings are co-financed from the treasury, benefits and tax breaks are provided. Thus, the deduction from the tax base for different age categories ranges from 30 to 50%.
Despite the obvious benefits, less than 20% of Spaniards participate in endowment insurance , while in Germany - more than 70%.
Pension supplements
In addition to the old age pension, a person can receive the following types of pension benefits:
- Due to disability. Disabled people and people who have received any disability group are given a pension of 948 euros. Disabled pensioners receive a supplement to their old-age pension of 316 euros per month.
- For the loss of a breadwinner. The pension in Spain is 648 euros.
Under what conditions do they retire?
Regardless of what pension is assigned in Spain, there is no division by gender, both for Russians and for foreigners of other origin. They are not divided into women, men and native Spaniards.
In old age, retirement is possible at 67 years of age with 15 years of work experience. At 65, a pension is granted if a person has worked for 38.5 years and paid social security contributions. When the work experience begins before 1967, social assistance is approved at the age of 60, the money is transferred to the current account once a month.
In the Kingdom of Spain, workers have the right to receive early state support:
- with 30 years of work experience in Spain, if during this period there was a break in work of up to 6 months, the amount of the benefit is reduced by 7%.
- hard and dangerous work;
- maritime specialties;
- mining and extractive industries;
- railways;
- gas and oil company;
- Agriculture.
When calculating pensions, the average salary is taken as a basis, and the replacement rate is determined using this indicator.
For example, an employee received an average of 3,500 euros. With a coefficient of 70%, he will be credited with 2,400 euros.
Problems of the Spanish pension system
Like all pension systems, the Spanish one experiences periodic crises. So at present it is considered unprofitable, since it bears too many social obligations. Despite the fact that the country's government is still controlling the process, the growth of pensions has decreased significantly, and some analysts are even predicting an imminent collapse of the pension system.
The main reason for this phenomenon is considered to be the difficult demographic situation in Spain. The fact is that the country's population is rapidly aging. At the same time, the birth rate remains low, and life expectancy increases. In addition, there is high unemployment due to which young people are leaving the country. As a result, there is no one to support the elderly.
It is also worth noting the fact that other social payments here are also made at the expense of the pension fund. For example, Russians who have never worked can count on receiving benefits of 430 euros per month. To do this, it is quite enough to legally just live in the country for ten years and have an income no higher than the subsistence level. In this case, native Spaniards can receive up to seventeen thousand euros per year.
In order for the pension system to continue to fulfill its function, the government of the country has been pursuing a rather unpopular tough policy since 2011. It boils down to increasing the retirement age and the amount of work experience required to receive a pension. For example, in 2021, despite protests from the population, it was decided to raise the retirement age by two years at once.
Despite the radical nature, this solution allowed us to somewhat smooth out the severity of the problem. In any case, in the very near future the country's leadership must take a number of measures to radically change the current situation. To achieve this, it is planned to gradually reduce the salary/pension ratio by increasing labor productivity. In addition, it is planned to limit the entry of migrants into the country in order to reduce the burden on the social system.
In any case, Spain remains an attractive country with a mild climate, where you can meet old age with dignity. To do this, it is enough to determine in advance in what form you will receive your pension here. It is also worth getting all the necessary advice in your home country before departure. In this case, you will not have to spend additional money to collect the necessary documents for assigning a pension, collecting certificates you need in two different countries at once.
Settlement rates
How much pension will be accrued depends on many factors:
- work experience;
- salary level;
- in what conditions did the person work;
- specialties;
- region where the potential retiree worked.
Older people do not receive the same pension benefits in different Spanish cities. Sociologists studied the average figures in euro equivalent:
- Madrid pays 1080.0;
- residents of Navarre receive 1047;
- in the Basque country the rate is 1133.0;
- Old people in Extremadura should calculate their spending within 761.0;
- Valencia pays 841.70 in 2021;
- Catalonia - 948.15;
- Aragon - 958.92.
Pension funds are enough for travel.
The state provides 844.0 euros for elderly people in the Canary and Balearic Islands. In Castile and Lyon, older people receive a little more - 898 euros.
The calculations are carried out and the sizes are determined by the local government, based on the prices of goods, products and natural conditions.
The minimum payment is fixed at 640 euros, which is 56,000 rubles. But Russians shouldn't envy high pension rates. It is necessary to compare the Russian Federation's expenses on medicines, treatment, food, utilities and other costs.
The average Spanish benefit is 990 euros or 88,000 rubles. Honored pensioners receive up to 2,560 euros, which exceeds 227,000 rubles. Our high-ranking officials are also not particularly poor in their old age. Exchange rates change every day; if you need an exact recalculation, you will have to contact the bank.
Autonomy pension
The amount of payments depends on the pensioner’s income and his contributions to the funds. In Spain, the amount of the pension paid depends on the person’s place of residence and work.
You can see this in the table example:
| Autonomy | Amount to be paid, in euros | Conversion in rubles |
| Navarre | 1047.91 | 78150 |
| Castile and Leon | 897.96 | 66970 |
| Cantabria | 958.53 | 71480 |
| Madrid | 1080.00 | 80550 |
| Catalonia | 948.15 | 70710 |
| Canary Islands | 842.71 | 62850 |
| Extremadura | 761.00 | 56750 |
What can unemployed Spanish citizens count on?
The state also provides financial social support to persons who have lived in Spain for 10 years, but have not earned any experience. As soon as the old person reaches 67 years of age, he can submit an application to the Seguridad Social body.
This department is responsible to residents for the implementation of social:
- provision;
- insurance;
- protection.
The amount of payments will be less than for pensioners with a replacement rate. But additional help is provided by various benefits and preferences in the area:
- medical services;
- travel on public transport;
- sales of goods at discounts.
The social pension is equal to the minimum subsistence level established in the country.
Requirements for Russian pensioners
Citizens of the USSR or the Russian Federation who have been officially employed in Spain since 1996 receive pension benefits. Special conditions and requirements have been developed for Russian pensioners. Applicants for social benefits in Spain must have a total work experience of 15 years.
Officially, legislative acts indicate that in the Kingdom of Spain it is enough for a potential pensioner to work for a year. In fact, this is not enough; the information can be confirmed or denied by pension fund employees.
For example, a woman, a citizen of the Russian Federation, worked in Russia for 13 years and 5 years in Spain. She applies at age 60 for a pension in the Russian Federation; when she turns 67, she begins to apply for Spanish benefits. At the same time, the Russian pension will cease to be received, and the amount paid will be withheld.
It is necessary to provide the following documents to the competent department of the Kingdom - Seguridad Social:
- an application completed in accordance with the form established by law;
- an extract from the Pension Fund of the Russian Federation, which indicates the length of service and the amount of the pension issued;
- work book on paper or electronic media;
- residence permit in Spain; no company will hire a foreigner without a residence permit.
If all conditions and requirements are met, the Russian resident will receive a pension of approximately 660 euros. As your work experience increases, pension payments will increase significantly.
Pensioners are leaving Russia in the hope of living a life with a decent living wage.
It should be taken into account before going for permanent residence that Spain has also undergone a demographic crisis. The number of old people is increasing, the birth rate is decreasing. Analysts make predictions that in 15 years the working-age population will not be able to provide money for people in old age, and a deficit will form in the state budget. Although the pandemic made its own adjustments, it was mostly old people from nursing homes who died. The exact number of aged citizens can only be shown by the next population census.
Problems and reform of the country
Currently, Spain is experiencing a demographic crisis, in other words, the birth of new citizens of the country has decreased, and the number of elderly people has only increased. This development of events may cause the inability to provide older citizens with pension payments in the required amount, since in 15-25 years the working population will sharply decrease. All this may be a consequence of the state budget deficit.
The population of Spain today is 7.8 million citizens over 65 years of age and only 7 million children under 14 years of age. For this reason, government authorities have determined that there is a need to raise the retirement age from 65 years to 67 years.
The retirement age in Spain has increased due to an unfavorable demographic situation
Standard of living in Spain
Based on our films and books, we can conclude that as soon as they are sent into retirement with honors, the employee of the enterprise falls into a panic, due to the ensuing idleness and lack of money.
In Spain, even in works of fiction there is no frustration about retirement. A free and independent life begins for traveling, communicating with friends and relatives.
Pensioners perform a national dance.
The Spaniards are very inquisitive, they do not become discouraged by old age, but receive additional education, so study groups are formed for pensioners at reduced prices.
Despite the global cataclysms and epidemic situation, the Spanish government socially protects the older generation so that older people enjoy comfortable conditions. When they had to undergo treatment, they were able to buy medications at a 90% discount. And if an employee is laid off or fired, after registering on the stock exchange for 6 months, he will receive a pension even at 61 years old, at the minimum rate, but with this money you can eat decently and buy things.
Briefly about the main thing
Despite global difficulties, Spanish pensioners have a standard of living in the top ten most prosperous countries. Centers with interesting activities are opened for older people, where they study information technology, mathematics, and history.
In hobby clubs, pensioners engage in activities that were inaccessible due to work and family stress.
To receive a pension, a foreigner only needs to come to Spain able to work and legally get a job. And 5 years of Spanish experience, combined with Russian, will allow you to obtain permission to apply for a pension in Spain when retirement age comes.
Preferential privileges for pensioners
Spanish citizens who have already retired rarely experience a lack of financial resources. This is facilitated by a rather large pension compensation, due to which it is possible not only to fully provide for oneself, but also to travel to other countries. In addition, senior citizens receive many benefits.
- Free treatment in medical institutions. This applies not only to visiting doctors and getting tests. Persons with benefits can receive medications at a 90% discount.
- Possibility of free or discounted travel on public transport. For persons of retirement age, tickets will be issued at a discount of 50 to 90%.
- Pensioners can visit cinemas with a 10-50% discount.
- Free or partially paid visits to museums. Typically, free admission is provided for public museums, such as the Reina Sofía in Madrid.
- Education in educational institutions at a reduced cost. Despite their advanced age, Spanish retirees are actively engaged in self-development. They are most interested in learning foreign languages, art, philosophy and economics. Additionally, it will cost a Spaniard only 300 euros for a full course to study a particular industry of interest.
- Preferential visits to sports clubs at a discount of 25-75%.
- Benefits on purchases. Many trade organizations provide pensioners with the right to issue discount cards - with their help you can purchase products and other goods without value added tax.
Spanish pensioners have many benefits
