Young people will have to postpone retirement to 71 years in order to maintain their standard of living
According to a study, the late entry of young people into the labour market will affect the retirement period. The ordinary retirement age by 2027 will be 67 years, and 37 years will have to be paid to receive 100% of the pension.
The late entry of young people into the labour market may force them to work until the age of 71 if they want to maintain a standard of living similar to the current one after retirement, as noted by a study published this Thursday by the BBVA Foundation and the Valencian Institute of Economic Research (IVIE).
The report stresses that the employment rate for young people aged 16 to 29 is 43.2 per cent, 15 points lower than in 2007, which means that many of them will reach 2065 with only 30 years of contributions, which is insufficient to collect the full pension. The lack of years of contributions will result in significant reductions in their pension as a result of the application of the reduction coefficients laid down in the law.
In 2027, the ordinary retirement age will be 67 years, but 100% of the pension will require a minimum contribution of 37 years, which can be advanced to two years if a contribution of 38 and a half years is credited.
In addition, the latest pension reform provides for a lower replacement rate — that is, the ratio between the initial pension and the final salary — which will fall from the current 77.1% to 75.3%. And if future reforms already under discussion in other countries, such as extending the calculation of the pension to the last 35 years of working life or requiring 40 yearsof contribution to collect the full pension, the replacement rate could be reduced to 57.6%.
Even if no new reforms are made, current young people will have to pay more and accept lower pensionsif they do not extend their working life. According to the authors, the best way to compensate for this loss would be to raise the retirement age.
You might like
DHL Express has laid the foundation stone of the future hangar at Vitoria airport
The company plans to take a giant step with a 6,600-square-foot ship, along with more than 13,000 square meters of outdoor facilities, making it the second largest DHL hangar on the European continent.
The chain's first fully manufactured electric car leaves the multinational Volkswagen plant in Landaben
Škoda Epiq is the first fully manufactured electric car in Pamplona and Volkswagen Navarra will continue to manufacture T-Cross and Taigo combustion models.
The Council of Álava will have the final say on whether or not summer camps are held in Bernedo, according to Berriozabal
Interviewed on Radio Euskadi , the president of the Araba Buru Batzar of the PNV, Jone Berriozabal, has said that it is "worrying" that, following last year's complaints about the summer camps in Bernedo, 200 families want to take their children to this camp.
Igor Arroyo: "Everyone must be able to learn Basque, but in order to stabilize their knowledge in the public service it is necessary"
The general coordinator of the LAB union has criticized the CC.OO. union for its attitude towards the Euskera. In his opinion, this union has made a "big mistake", not only because it takes CC.OO away from ELA and LAB, but because it takes it away from the "Basque workers".
The Navarre government will contribute 50 million euros to the company it will create with the Chinese company Hithium
The battery and power storage plant will initially create 700 jobs, and in a second phase the number could reach 1,000 workers.
Nadia Calviño has stressed that the Basque Country is a "good customer" of the European Investment Bank, promoting innovation in various areas
Arantza Ruiz, Director of Information at EITB Media, has interviewed Nadia Calviño, President of the European Investment Bank, on the "12 Minutes" programme of A0ETB2.
Medical Director and Deputy Medical Director of Cruces University Hospital resign
According to EITB, both resignations fall within the context of the medical strike and the assistance pressure that the stoppages are causing.
The Government approves the broad outlines of the 2027 budget, with growth projected at 1.6 per cent
The Finance and Finance Adviser, Nöel d'Anjou, has explained that the priority will be to strengthen basic public services, health, education, housing, security and social services.
Medical unions call for a rally in front of the Ministry of Health on June 15
The six medical unions on the strike committee maintain the call for a strike from 15 to 19 June and express their willingness to meet with the Ministry of Health whenever there is a real negotiating will and concrete proposals are on the table.
Talgo has reached a volume of orders of EUR 6.3 billion, the highest in its history, and aims to double its production capacity
The company has announced the creation in the Basque Country of a corporate research unit integrated into the Basque Network of Science, Technology and Innovation.