Banco de Espana advocates raising retirement age beyond 67.

The standard retirement age in Spain is gradually being increased from 65 to 67 at present, the aim being to ensure that the State pension scheme remains viable in the face of an aging population and on Wednesday the governor of the Banco de Espana warned that it is advisable to consider further extensions to the working lives of people in this country.

Luis Linde was speaking in parliament to address the issue of the precarious financial situation faced by the Social Security system, and commented that any “additional delays” could be justified by the increased life expectancy in this country and the fact that people are generally finding their first job later in life than was the case in the past. Already the gradual increase in retirement age is under way, with the standard age currently at 65 years and five months, and it will reach 67 years in 2027.

There are two main proposals in order to set the Spanish Social Security system on a firmer financial footing: one is to increase the monthly contributions made by workers, and the other is to take steps to ensure that they contribute for longer and are therefore retired for a shorted period afterwards. Sr Linde weighed up both options during his address, and came down in favour of the latter.

In his view “any measure designed to discourage early retirement and allow people to retire after the age of 67” would have a positive effect on the Social Security System.

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