Hostname: page-component-586b7cd67f-dsjbd Total loading time: 0 Render date: 2024-11-22T12:49:17.109Z Has data issue: false hasContentIssue false
  • English
  • Français

The fiscal and welfare consequences of the price indexation of Spanish pensions

Published online by Cambridge University Press:  27 December 2018

Julián Díaz-Saavedra
Julián Díaz-Saavedra*
Affiliation:
Universidad de Granada, Campus de la Cartuja s/n, Granada, Spain
*
Corresponding author. E-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

We study the fiscal and welfare consequences of three options for increasing pension generosity in Spain: (i) disability and minimum pensions are fully indexed with the Consumer Price Index (CPI); (ii) minimum and lower value pensions are fully indexed with the CPI; and (iii) returning to full price indexation of all Spanish pensions. While these reforms increase pension adequacy, the tax increases needed to finance the higher pension expenditure differ significantly. Moreover, most current cohorts prefer returning to the full price indexation of all Spanish pensions, but future cohorts prefer that only disability and minimum pensions be indexed with the CPI.

Keywords

Computable general equilibriumretirementsocial security reformC68H55J26
Type
Article
Information
Journal of Pension Economics & Finance , Volume 19 , Issue 2 , April 2020 , pp. 163 - 184
Copyright
Copyright © Cambridge University Press 2018

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Argandoña, A, Díaz-Giménez, J, Díaz-Saavedra, J and Álvarez, B (2013) El Reparto y la Capitalización en las Pensiones Españolas. Barcelona: Fundación Edad y Vida.Google Scholar
Boldrin, M, Conde-Ruiz, J and Díaz-Giménez, J (2010) Eppur si Muove! Spain: Growing Without a Model. FEDEA, Documento de Trabajo 2010/12.Google Scholar
Carone, G, Eckefeldt, P, Giamboni, L, Laine, V and Summier, SP (2016) Pension Reforms in the EU since the Early 2000's: Achievements and Challenges Ahead. Discussion Paper 042, Directorate-General for Economic and Financial Affairs, European Commission.CrossRefGoogle Scholar
Chⱡoń-Domińczak, A (2018) Impact of changes in multi-pillar pension systems in CEE countries on individual pension wealth. Journal of Pension Economics and Finance 17, 110–120.CrossRefGoogle Scholar
Conde-Ruiz José, I and González, CI (2013) Reforma de Pensiones 2011 en España. Hacienda Pública Española, IEF, March: 9–44.Google Scholar
De La Fuente, Á and Doménech, R (2013) The financial impact of Spanish pension reform: a quick estimate. Journal of Pension Economics and Finance 12, 111–137.CrossRefGoogle Scholar
De La Fuente, Á, García Díaz, MA and Sánchez-Martín, AR (2018) La salud financiera del sistema público de pensiones español: proyecciones de largo plazo y factores de riesgo. Hacienda Pública Española/Review of Public Economics, 1–35.Google Scholar
Díaz-Giménez, J and Díaz-Saavedra, J (2017) The future of Spanish pensions. Journal of Pension Economics and Finance 16, 233–265.CrossRefGoogle Scholar
European-Commission (2015) The 2015 Aging Report. Economic and budgetary projections for the 28 EU Member States (2013–2060). European Economy 3/2015.Google Scholar
Grech, A (2015) Evaluating the possible impact of pension reforms on elderly poverty in Europe. Social Policy and Administration 49, 68–87.CrossRefGoogle Scholar
Hernández de Cos, P, Jimeno, JF and Ramos, R (2017) The Spanish Public Pension System: Current Situation, Challenges, and Reform Alternatives. Banco de España, Documentos Ocasionales 1701.Google Scholar
Holzmann, R and Hinz, R, editors (2005) Old-age Income Support in the 21st Century: An International Perspective on Pension Systems and Reform. Washington, DC: World Bank.CrossRefGoogle Scholar
Humblet, M and Silva, R, editors (2002) Standards for the XXIst Century: Social Security. Geneva: International Labour Office.Google Scholar
Moral-Arce, I (2013) Aplicación de Factores de Sostenibilidad en el Sistema de Pensiones Español: Previsiones Para el Período 2012–2050. Instituto de Estudios Fiscales, P.T. 4/2013.Google Scholar
Patxot, C, Solé, M and Souto, G (2017) Should pensions be redistributive? The impact of Spanish reforms on the system's sustainability and adequacy. Hacienda Pública Española/Review of Public Economics, 1–47.Google Scholar
Sánchez-Martín, AR (2014) The Automatic Adjustment of Pension Expenditures in Spain: An Evaluation of the 2013 Pension Reform. Banco de España, Documento de Trabajo 1420.CrossRefGoogle Scholar
Sánchez-Martín, AR (2017) Proyecciones Financieras y de Bienestar del Sistema Español de Pensiones: Resultados de Simulación. FEDEA, Documento de Trabajo 2017/15.Google Scholar