September 24, 2020

Díaz rejects it but Escrivá insists on encouraging him




Discrepancies between the members of the Government on the delay of the retirement age. While the Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, proposed a week ago reward through incentives to those people who prolong their working life beyond the legal retirement age, today it was the head of Labor, Yolanda Díaz, who has been against this measure.

In an interview on TVE this morning, Díaz has shown this Monday against encouraging the extension of working life beyond the legal retirement age because this “Hinders” the rejuvenation of a labor market like the Spanish, “deeply aged.” «The challenge for our country is to incorporate young people into the job market. Encouraging us to extend and also encourage the retirement age beyond the legal age hinders the possibility of incorporating young people “, stressed the minister, who pointed out that, according to data from the EPA, 36.5% of young people are currently unemployed. The minister recalled that this issue is being discussed in the Toledo Pact Commission, in addition to being the subject of negotiation between the two parties that govern in coalition, PSOE and United We Can.

Asked if delaying retirement would bring Spain closer to the European model, Díaz has denied it and recalled that Spain does not have European salaries, nor therefore European contributions and pensions. «I would like to have the European model», Has affirmed.

The minister has indicated that only 336,000 people currently receive the maximum pension in Spain, the equivalent of 5.2% of all pensioners, while almost 95% are in a “very low” pension band. “I know that pensioners have enormous difficulties to pay for electricity and basic services. We are light years away from the European models and I believe that the urgency, the priority and the challenge right now is the incorporation of young people “, he insisted.

Escrivá answers

These statements, however, have been answered later by Escrivá, during an interview in La Sexta. The Social Security holder insists on his idea raised last week. In his statements, he pointed out that it must be taken into account that what is being discussed in the Toledo Pact is a design of the pension system 35 years after the “avalanche” of retirements that will occur from 2025 by baby boomers and an aging population. A problem that, in his opinion, will only be blurred if the effective retirement age is delayed.

“We will have a clear fall in the working-age population, that is indisputable. And what we are working on is, in the medium term, to give incentives to people who want to work beyond the legal retirement age ”, he pointed out.

The minister has warned that in Spain “there is little incentive” to continue working beyond the legal retirement age, especially if one takes into account that there are only around 2% or 3% of incentives, compared to 6% or 7% on average of neighboring countries. At this point, he stressed that for each year that retirement is delayed, the system achieves significant savings. “Seen in today’s perspective, our analysis does not validate that diagnosis. You have to look long, we are talking about 25 years forward and that is where people of working age will really fall, “he said about Díaz’s statements.

Escrivá has also explained that Spain has a system of “voluntary” early retirements poorly designed, since workers with high incomes, who are the ones who retire the most early, barely suffer a 2% penalty for each year they advance their retirement, while those with lower salaries and regulatory bases are penalized with 8%. “It is a regressive model and as befits a progressive government, we want to correct that, right?”

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