article_detail

The Spanish government is really focusing on active and semi-retirement this year, introducing reform after reform that aim to make working later in life a bit more attractive. At times it seems like policy makers want to keep us in the workforce indefinitely, and there is actually a grain of truth in this: the state pension pot isn’t exactly overflowing so the longer we work, the better it is for the government’s coffers.

 

To sweeten the deal still further, Spain is currently processing a bill that will make it possible for those who have already retired to return to paid work. They’re calling it ‘reversible retirement’ and it will replace the fairly rigid and not very accurately named ‘flexible retirement’ option that’s been in place since 2002.

 

According to Borja Suárez , the Secretary of State for Social Security and Pensions, this new measure will compliment the other reforms recently approved. He didn’t shy away from admitting that the government is indeed encouraging older people to remain in the labour market as long as possible.

 

The goal is to cushion the impact on the system of the massive retirements of the baby boomer generation, which are already beginning to trickle through.

 

With the current flexible retirement system, a retiree has the option of combining their pension with a part-time contract, but they lose the proportional pension amount for their working hours. As a result, the uptake is pretty poor.

 

Ministry sources point out that in Spain, the transition between working life and retirement is very abrupt, something that doesn't occur in other neighbouring countries. Precisely for this reason, they point out that the reforms the government is pursuing are aimed at offering "attractive options" for workers to make a more gradual transition to retirement.

 

The reform is still in its very early stages of development and will likely take several months to implement.

 

 

Image: Freepik