The sustainability of the Spanish public pension system: an alternative reform

Abstract

In the context of an increasingly aging population, the sustaining of public pension systems becomes more and more challenging. The growing number of pensioners together with the negative consequences of the financial economic crisis of 2008 and thus, the decrease of contributions to the schemes, forced the economies to review their pension systems and carry out reforms that assures their sustainability. This project aims to give a basic knowledge of the situation of the current and future Spanish pension system in comparison with that of one of the countries that has successfully implemented a notional defined contribution model: Sweden. Projections estimated considering different macroeconomic scenarios show the seriousness of the Spanish situation in relation with one of those countries that has opted for this alternative reform and the goodness that moving to another system of comparable characteristics would imply.