Authors : Jose-Maria Montero and Javier Santacruz
Abstract: In February 1908, the first official Spanish institution responsible for pensions and health care was created. Since then, the Spanish pension system has undergone many changes and has overcome many difficulties. One of the biggest challenges that the Spanish pension system has faced has been the issue of sustainability and adequacy arising from the Spanish demographic trends and more specifically from the increase in life expectancy and the low birth rate, which have caused a reversal in the structure of the population pyramid. This is why in 2011 and 2013 two important reforms took place in the Spanish pension system. This study addresses both reforms presents demographic evidence, projections, modelling and simulation affecting the future sustainability and adequacy of the system and discusses some specific problems still to be resolved. In addition, the study also deals with the question of the management of pension funds and includes a proposal for the Spanish pension system based on the current Swedish model.
Jose-Maria Montero and Javier Santacruz, 2016. Sustainability and Adequacy of the Spanish Pension System. International Business Management, 10: 2742-2755.