Tue. Apr 23rd, 2019

"We must allow full compatibility of pension with work"

"We must allow full compatibility of pension with work"

The head of Economy and Employment of Citizens (Cs), Luis Garicano, believes that a key measure to ensure the sustainability of the pension system is to allow full compatibility of the pension with work, and criticized the political "demagogy" that weighs currently on this topic.

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In an interview with EFE, Garicano has lamented that the PSOE makes "promises that can not be met", although it has affected that Citizens is in favor of revaluing pensions with the consumer price index (CPI), since the largest They can not have uncertainty about their retirement.

For the economic leader of the orange training the main measures to sustain pensions are to preserve purchasing power, encourage savings in a complementary way, make the pension fully compatible with work and eliminate early retirement.

"The PSOE is making populism and putting the system in danger," he said, after stating that spending on Social Security rises 11% and is because "is doing a lot of electioneering."

Garicano has advocated to undertake long-term measures to encourage birth rates, investment in human capital and productivity, in order to create employment and increase contributions while short-term -specified- revalue pensions according to the CPI .

In the medium term the economic person responsible for Citizens advocates measures to give more freedom to workers who want to continue their working life, also to eliminate early retirement that are "very expensive" and to encourage private savings.

In this last sense, Garicano has advocated both for fiscally encouraging savings and private pension plans and for designing a model in which the State helps the worker to save part of his salary in a complementary manner, as in England.

Around the private pension plans sees favorable fiscal incentives, but at the same time the commissions of these plans are reduced.

"The taxation of savings in general must be favorable," he said, after highlighting the importance of the Government giving "transparency" to the system and informing the citizen of what is quoted in his working life and his future pension.

For Garicano "the real risk is that as pensions grow, all spending on education suffers and the sustainable system must be made ... preserve purchasing power, but doing things that help to save in a complementary manner".


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