The pension system: an urgent debate

I know this stance will generate criticism, but as a society we must face an uncomfortable reality: the pension system is unsustainable. In 2025, more than 40% of the state budget was allocated to pension payments, and yet it was necessary to take out a loan to cover the two December payments. We are living with a structural and permanent deficit. And far from stopping, spending will continue to rise: it has already been announced that pensions will increase by 2.7% in 2026.

How are pensions financed? With what the state collects each month through taxes paid by working people. In other words, the current imbalance can only be corrected in two ways: by reducing spending (cutting pensions) or by increasing revenue (raising taxes). And since pensions are not only not being cut, but are increasing year after year, the only real solution is to increase the tax burden on the working population.

In addition to income tax and other social security contributions, the so-called Intergenerational Solidarity Tax—a polite name—is now included in payrolls. This tax increases every year and will reach 0.9% in 2026.

The underlying problem is clear: current working incomes are no longer sufficient to sustain the system. Extraordinary taxes are needed to plug the gap, yet temporary borrowing is necessary to meet payments. And if we project this situation into the medium term, the scenario is even more worrying. In 10 or 15 years, with the rapidly aging population, there will be more retirees than people of working age. If we already dedicate nearly 40% of the budget to pensions, what percentage will we have to allocate then? And, above all, who will pay for it? Everything points to the system, as it is currently designed, heading towards collapse.