Monday, February 6

Young people, women and adults without studies, those who save the least for retirement


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Spain is the second European country in which less is thought about saving for retirement. This is clear from a recent survey carried out by the European employers’ association of insurance companies, Insurance Europe, to which ABC has had access. 57%, almost six out of ten, declare that they do not save for retirement with some supplement to the public benefit, that is, with some type of pension plan, for example. Only Finland has a higher percentage, with 60%.

The European average (16 countries analyzed) is 38%, according to the study. And going into detail about how those who are saving save, there are wide differences with respect to the whole of the Old Continent. While 34% of the European average report saving with a business planIn Spain, only 10% of workers use this route.

As for those who use an individual pension plan, the figure for the European average is 26%, while in Spain it is 24%.

The survey also disaggregates the figures by gender, age, type of employment, training and marital status. The conclusion is clear: young people, women and with no middle or higher education is the profile of those who save the least for retirement.

By age, they are those of between 18 and 35 years old those who least think about their retirement using a complementary savings method: 65% in Spain, compared to ‘only’ 40% in Europe. Going to the detail of those between 36 and 50 years old, the percentage drops to 57% in our country (36% in Europe) and to 50% (37%) in those over 50 years old.

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On the other hand, in Spain the unemployed are those who save the least for retirement (74%), followed by part-time private sector workers (72%), full-time private sector workers (52%) and from the public sector (43%).

By educational level the differences are also notable in Spain. Those who least think about retirement are those with the least training, 73%, compared to 43% in Europe. At a medium educational level, the percentage drops to 62% and in the section of those with higher education it drops to 49%. By marital status, single people save the least for retirement with 67% of them.

Future plans

The survey also analyzes the plans that Spaniards have in terms of savings. There is 57% who do not save for retirement … but for different reasons. 31% state they want to use a plan to supplement their future public pension but cannot afford it (30% in Europe, practically the same). Likewise, there is a 15% who do want to save for retirement in the near future but do not do so because they do not have enough information to choose one option or another.

Even so, despite the fact that a good part of them cannot afford a private pension plan, there is almost as much that they directly do not want. There is a 29% who do not consider opening a private savings system due to reasons other than having another type of income that they can trust for their retirement. For their part, only 8% plan to open a plan to save in the short term.

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Regulatory changes

These figures show that Spain is not a country of great savers for retirement. And the tendency could go to more in view of the decisions of the Government of PSOE and United We Can; all this in pursuit of penalizing private savings and favoring the so-called employment plans and the superfund of pensions of Minister Escrivá.

In the 2021 Budgets, a first hack to private savings was already included. The tax deduction for contributions to individual plans was reduced from 8,000 to 2,000 euros. And in the 2022 accounts, it is expected that this amount will again be reduced to 1,500 euros. The Government always defends the argument that these pension funds have very high commissions and that the deductions only benefit the upper classes. The Minister of Finance, María Jesús Montero, even pointed out that only 8% of Spaniards with individual plans contributed more than 4,000 euros. Likewise, as ABC revealed, the Executive’s intention is to even reach zero in deductions for individual plans, harming 7.4 million participants in these plans.

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